RHB Investment Bank Bhd maintained its negative trading bias on gold, keeping a short position recommendation after COMEX gold breached the key US$4,250 support level and signalling the possibility of a further decline towards US$4,000.
Gold prices rebounded on Thursday after falling to a six-month low, supported by bargain hunting and renewed safe-haven demand as tensions between the United States and Iran escalated.
Spot gold rose 0.5% to US$4,095.64 an ounce after touching an intraday low of US$4,022.09, its weakest level since November 2025. However, US gold futures for August delivery slipped 0.4% to US$4,116.20.
The recovery came as investors assessed the latest military exchanges between Washington and Tehran. Iran declared the closure of the Strait of Hormuz following fresh US strikes, raising concerns over global energy supplies and inflationary pressures.
Reuters reported that investors are also awaiting the release of the US Producer Price Index data for further clues on the Federal Reserve’s policy direction after US consumer inflation accelerated in May.
Despite the rebound, RHB Research said the technical outlook remains bearish after gold closed at US$4,133.30 on Wednesday, drifting further below both its 50-day and 200-day simple moving averages.
The research house said strong bearish momentum could see gold retest the psychological US$4,000 support level, with a further downside target of US$3,700 if that level is breached. Immediate resistance is seen at US$4,400.
Higher crude oil prices, driven by the Middle East conflict, could add to inflationary pressures, although expectations of higher interest rates may continue to weigh on the non-yielding precious metal.
