Gold Technical Analysis – End of the Israel-Iran war weighs on the market | Forexlive

Fundamental
Overview

The end of the Israel-Iran
war caused the geopolitical risk premium to vanish and weighed on gold as the
safe haven flows reversed further.

In the bigger picture, gold
remains in an uptrend as real yields will likely continue to fall amid Fed
easing and just a hawkish repricing in rate cuts expectations could trigger
corrections in the short term.

The economic data in the
next months will be particularly important for the gold market as Fed members
sound inclined to cut earlier than expected or even more if the inflation data
remains soft or the labour market data deteriorates further.

Gold
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that gold continues to edge lower towards the major trendline helped also by the end of the
conflict between Israel and Iran. From a risk management perspective, the
buyers will have a much better risk to reward setup around the trendline to
position for a rally into a new all-time high. The sellers, on the other hand,
will want to see the price breaking lower to increase the bearish bets into the
3120 level next.

Gold Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can
see that the price bounced around the swing low at 3294 as the buyers stepped
in with a defined risk below the level to position for a rally into new highs.
The sellers might want to wait for the price to come into the downward trendline
to position for a drop into the major upward trendline with a better risk to
reward setup.

Gold Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can
see that we have a minor resistance zone around the 3340 level. That’s where we
can expect the sellers to step in with a defined risk above the level to
position for a drop into the major trendline. The buyers, on the other hand,
will look for a break higher to increase the bullish bets into new highs. The
red lines define the average daily range for today.

Upcoming
Catalysts

Tomorrow, we get the latest US Jobless Claims figures and the
Final US Q1 GDP report. On Friday, we conclude the week with the US PCE price
index and the Final University of Michigan Consumer Sentiment report.

Later this year,
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