Gold price benefits from Middle East crisis, modest USD strength caps the upside
Technical Outlook: Gold price seems poised to appreciate further while above $2,625-2,624 resistance-turned-support
From a technical perspective, the emergence of some buying near the $2,625-2,624 area reaffirms a support marked by a short-term ascending trend-channel resistance breakpoint and should act as a pivotal point. Some follow-through selling could drag the Gold price to the $2,600 mark, which if broken decisively could pave the way for some meaningful downside in the near term. The XAU/USD might then decline to the $2,560 intermediate support en route to the $2,535-2,530 region.
On the flip side, the $2,656-2,657 horizontal zone could offer some resistance ahead of the $2,672 area and the $2,685-2,686 region, or the record peak touched last week. This is closely followed by the $2,700 mark, which if conquered will be seen as a fresh trigger for bullish traders and set the stage for an extension of a multi-month-old uptrend.
Recommended Broker
