Gold struggles to gain steam amid US-Iran optimism as neutral Fed caps momentum
FUNDAMENTAL OVERVIEW
The bullish momentum in gold waned recently despite lots of tailwinds like lower real yields, looser financial conditions and lower US dollar. It’s certainly not been the same since the late January crash, and the major difference is that the Fed has pivoted away from the dovish stance.
Nonetheless, gold should remain supported amid the positive US-Iran deal expectations which should keep any downside limited.
Everything now hinges on US-Iran talks. If negotiations were to collapse again, we might get a bigger pullback, but as long as the ceasefire holds, the losses should remain limited. On the other hand, a peace deal might give gold another boost to extend the rally into new highs. For a much stronger rally, gold would need the Fed to pivot back to a dovish stance.
GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can see that gold is continuing to slowly edging higher as the bullish momentum waned. The natural target for the buyers is the downward trendline around the 5,000 level. If the price gets there, we can expect the sellers to step in with a defined risk above the trendline to position for a drop into the major upward trendline. The buyers, on the other hand, will look for a break to increase the bullish bets into the 5,400 level next.
GOLD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have a trendline defining the bullish momentum. The buyers will likely lean on the trendline with a defined risk below it to keep pushing into the major downward trendline. The sellers, on the other hand, will look for a break to pile in for a drop into the major upward trendline around the 4,100 level.
GOLD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we have a minor downward trendline defining the current pullback into the upward trendline. The sellers will likely continue to lean on the trendline to keep pushing into new lows, while the buyers will look for a break to pile in for a rally into new highs. The red lines define the average daily range for today.
This article was written by Giuseppe Dellamotta at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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