Gold Technical Analysis
Ahmed H Habib
Chief Markets Strategist, Citizen FX
Today’s Gold Analysis Overview:
The overall Trend for Gold: Bullish.
● Today's Gold Support Levels: $3372 – $3330 – $3290 per ounce.
● Today's Gold Resistance Levels: $3425 – $3466 – $3530 per ounce.
Chart by Trading View
Contrary to expectations before the start of the week's trading, gold bulls were unable to push the gold price index towards the psychological $3500 per ounce resistance level, despite the intensification of the military conflict between Iran and Israel. Gold's spot price gains stalled around the $3452 per ounce resistance level, and amid profit-taking, gold prices settled around $3383 per ounce at the time of writing this analysis. According to performance across gold trading platforms, the gold price slightly fell below $3400 per ounce as declining concerns about hostilities between Israel and Iran curbed safe-haven demand. Recently, reports indicated Tehran's readiness to resume nuclear talks with the United States, signalling its willingness to halt missile exchanges after four days of airstrikes.
This increased risk appetite, as the conflict has so far avoided targeting critical global energy infrastructure, further supported the market.
Trading Tips: We still advise adhering to the strategy of buying gold on every dip, but without taking excessive risks, and monitoring the influencing factors on the gold market as outlined in this analysis.
On another note, that will affect the gold market, the Federal Reserve is expected to keep US interest rates unchanged this week. The Summary of Economic Projections will also reveal how FOMC members are balancing the risks of resurgent inflation and a weakening labour market amidst a period of economic uncertainty. Recent economic data, particularly last week's soft inflation report, has reinforced expectations that the US central bank may begin easing its monetary policy as early as September.
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