Gold: Bulls strike back – OCBC
|
Gold rose back above 3100, from under 3000 overnight as earlier sell-off dissipated. XAU/USD was last at 3123 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Risks skewed to the upside
"It is likely that the previous sell-off was more a case of broad liquidation across asset classes (or margin calls, etc) but as the sell-off settles, gold is still a hedge in times of uncertainty. Gold’s rebound reflects growing investor anxiety over tariff threats and the potential reshaping of global trade norms."
"As protectionist rhetoric escalates, markets are increasingly pricing in policy uncertainty and the risk that established economic and trade frameworks could be rewritten. In this environment, gold has its role as a strategic hedge – not just against inflation, but also against geopolitical fragmentation and the risk of a more disorderly global economic order."
"Bearish momentum on daily chart faded while RSI rose. Risks skewed to the upside. Resistance at 3167 (recent high). Support at 3048 (21 DMA), 2960 (50 DMA)."
BRANDED CONTENT
Finding the right broker for trading Gold is crucial, as not all brokers offer the same advantages. Explore our list of top-performing brokers to discover the best options for seamless and cost-effective Gold trading.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.