Gold: Signs of stabilization observed

LONDON (February 3) OCBC Bank analysts Sim Moh Siong and Christopher Wong report that Gold prices have shown tentative signs of stabilization after a sharp decline from above USD5,500/oz to a low of USD4,402/oz. The report notes that sensitivity to USD moves and Fed uncertainty remains high, suggesting that near-term trading may be choppy.

Gold prices stabilize after sharp drop

"The sharp decline in gold prices from above USD5,500/oz last week to low of USD4,402/oz yesterday appears to show tentative signs of stabilisation."

"While prices are now less elevated following the correction, sensitivity to the USD, yield repricing, and uncertainty around Fed policy remains high."

"4,400-4,600 remains a key area of support. Sustained break below would point to a deeper corrective phase with support at 4210/15 levels."

FXStreet