By Anjali Sharma
WASHINGTON – Emkay Wealth Management on Wednesday said that gold remains on a solid technical footing, with upside targets pegged at US$4,368 and $4,600 per ounce, as support levels exist around $3,890 and $3,510.
The 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, the report said.
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.
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 suggested 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 recommended that investors “hold existing positions and add on dips”, viewed 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 added.
