Gold: Sideways near support before FOMC – OCBC

OCBC strategist Christopher Wong reports Gold rebounded after United States (US) Consumer Price Index (CPI) as 10-year US yields and Oil eased, reducing inflation pressure on bullion. Wong reiterates that elevated real yields remain a near-term hurdle but sees stronger investment demand and central-bank buying as a cushion. OCBC keeps a constructive medium-term view, with FOMC guidance crucial for extending the recovery.

Bullion supported but capped by yields

"Gold rebounded after US CPI, even as the data reinforced expectations for a Fed hike this week."

"The move came as 10y UST yields eased back from near-5% highs, while oil prices also retreated from earlier peaks, helping to temper some of the inflation pressure that had weighed on bullion. "

"Dip-buying and broader investor participation provided additional support."

"We retain a constructive medium-term bias, with upcoming FOMC now the key test for whether the recovery can extend or the rates headwind reasserts itself."

"Bearish momentum on daily chart intact while RSI was flat. Sideways trading likely to persist until we get a clearer catalyst."

"Resistance at 4460 (21 DMA), 4540 (200 DMA) and 4700 (recent high). Support at 4270 (50 DMA), 4000 levels"