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)."