Gold has yet to recover after the steep decline from all-time high, but pace of decline is starting to moderate. XAU last seen at 4114.34 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Daily momentum shows signs of turning bearish

"Daily momentum on daily chart shows tentative signs of turning bearish while decline in RSI moderated. Next key support levels at 4023 (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 stabilise. 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."