Gold consolidated, following the steep decline. XAU/USD last seen at 4070 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Daily momentum on daily chart is mild bearish

"US CPI today may have some implications. In line with estimates or softer print may help to stabilise gold sentiment but a hotter print could risk another sell-off. Daily momentum on daily chart is mild bearish while RSI is flat (for now). Next key support levels at 4043 (21 DMA), 3971 (38.2% fibo) are key to watch. Daily close below those levels may open way for further downside towards 3845 (50% fibo), 3720 levels (50 DMA, 61.8% fibo)."

"Bulls will need to reclaim resistance around 4120/30 levels (23.6% fibo retracement of Aug run-up to Oct high) for sentiments to stabilize. Next resistance at 4200 and 4380 (recent all time high). Though we are cautious in the near term due to stretched technicals, we still maintain a constructive outlook into 2026 on a mix of structural and fundamental factors."

"Strong official sector demand, Fed embarking on rate cut cycle and broader portfolio demand for gold as a reliable store of value and hedge against inflation, debt and geopolitical risks should help underpin the constructive outlook"