Gold Near Key Support as Downward Momentum Persists
Societe Generale's analysts warn that gold is near key support after failing to hold gains above its 200-day moving average. The metal has struggled to establish itself above this average during its recent rebound attempt, indicating persistent downward momentum.
The bank says gold must reclaim a recent pivot high near $4,315 or the decline could continue. It identifies the next support areas around a projection of $4,095 and the June and July troughs at $3,960 and $3,940 as a crucial zone.
Societe Generale remains overweight equities and commodities, with a particular emphasis on gold and copper. It keeps a 10% allocation to gold and broader commodities unchanged from the third quarter but raises its equity allocation to 58% from 55% and cuts its government bond exposure to 12% from 15%.
The bank forecasts prices at $4,750 an ounce in the fourth quarter, then $5,000 by the second quarter of 2027, and $5,250 by the third quarter. Its full-year forecasts are $4,500 an ounce for 2026 and $5,125 for 2027.