Recently, gold touched $4,368 in October before a modest pullback to just under $4,000 by month-end, driven by a 1.4% appreciation in the US dollar over the past month.
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Gold remains on a solid technical footing, with upside targets pegged at US$4,368 and $4,600 per ounce, while support levels exist around $3,890 and $3,510, according to Emkay Wealth Management.
Recently, gold touched $4,368 in October before a modest pullback to just under $4,000 by month-end, driven by a 1.4% appreciation in the US dollar over the past month.
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Analysts at Emkay Wealth Management believe that the longer-term trend for gold remains upward, supported by sustained institutional and central bank demand and a weakening dollar environment over the past year.
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The geopolitical issues that have persisted in Eastern Europe and the Middle East have led investors to seek safety in gold. The US dollar’s 8% depreciation over the past year has also supported a broad rally in commodities, including precious metals.
According to Emkay, year-to-date inflows stand at $65 billion, with nearly $20 billion added in the last three months alone. Central banks have been key participants in this trend, diversifying their reserves away from dollar-denominated assets amid mounting global macroeconomic uncertainty.
Emkay Wealth’s analysis suggests gold could continue consolidating near the $4,000 mark before attempting another move higher.
The firm’s upside resistance targets of $4,368 and $4,600 represent potential breakout points, while downside supports at $3,890 and $3,510 are seen as accumulation zones for long-term investors.
The advisory recommends that investors “hold existing positions and add on dips”, viewing current price corrections as an opportunity rather than a threat.
“Gold’s long-term structure remains intact, supported by continued institutional buying, diversification away from the dollar, and resilient consumer demand,” it said.
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