Gold stays under pressure as the US-Iran crisis keeps inflation and rate hike risks elevated
FUNDAMENTAL OVERVIEW
Gold continues to consolidate near monthly lows as the ongoing US-Iran crisis is keeping a lid on precious metals due to renewed upside inflation risks. Overall, the risk/reward has flipped to the upside after the recent soft US inflation data and the dovish repricing, but traders will need a clear de-escalation to trigger a relief rally.
Therefore, the US-Iran headlines will continue to drive the price action, especially this week with pretty much nothing on the agenda. De-escalatory news should support gold and trigger short-term rallies, while further escalations will continue to weigh on the market and drag prices lower.
GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can see that gold is still consolidating near the monthly lows as the ongoing US-Iran conflict is weighing on the market. If we get a pullback into the trendline, we can expect the sellers to step in with a defined risk above the trendline to position for a drop into the 3,885 level. The buyers, on the other hand, will look for a break to open the door for a move into the next trendline around the 4,500 level.
GOLD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have a minor downward trendline defining the recent bearish structure. The sellers will likely continue to lean on the trendline with a defined risk above it to keep pushing into new lows. The buyers, on the other hand, will want to see the price breaking higher to extend the pullback into the major downward trendline.
GOLD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we have a minor upward trendline defining the pullback into the downward trendline. The buyers will likely lean on the trendline with a defined risk below it to target a break above the downward trendline. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 3,885 level next. The red lines define the average daily range for today.
UPCOMING CATALYSTS
On Thursday, we get the latest US Jobless Claims figures, while on Friday we conclude the week with the Flash US PMIs. The focus remains on US-Iran headlines.
This article was written by Giuseppe Dellamotta at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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