Gold Takes a Breather After Multi-Week High Amid Geopolitical Tensions

Gold Takes a Breather After Multi-Week High Amid Geopolitical Tensions

Gold showed a minor sell-off after hitting a multi-week high. The yellow metal was one of the best performers the previous week following Israel's strike on Iran. It hit a low of $3409 and is currently trading around $3415.

Both sides have caused significant damage to civilians and military personnel, resulting in an intensified conflict. Additionally, there are ongoing attacks. ". After rejecting ceasefire negotiations, Iran has stated that it will only commence them after completing their response to Israel's preemptive attacks. US President Donald Trump has emphasized the importance of reaching an agreement for peace but also acknowledged that it would require significant fighting and negotiation. The situation remains extremely volatile due to ongoing hostilities and no signs of de-escalation, with both militaries cautioning civilian citizens to be cautious in anticipation of future attacks.

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Technical Analysis: Key Levels and Trading Strategy
 
Gold prices are holding above the short-term moving averages of 34 EMA and above 55 EMA and the long-term moving averages (200 EMA) on the 4-hour chart. Immediate support is at $3400 and a break below this level will drag the yellow metal to $3385/$3367. The near-term resistance is at $3430 with potential price targets at $3450/$3475/$3500/$3550.

It is good to buy on dips around $3370 with a stop-loss at $3345 for a target price of $3450.