Today’s Gold Analysis Overview:
The Overall Gold Trend: Bearish.
Today's Gold Support Points: $4560 – $4500 – $4420 per ounce.
Today's Gold Resistance Points: $4690 – $4760 – $4830 per ounce.
Today's Gold Trading Signals:
Buy gold from the support level of $4540 with a target of $4700 and a stop loss of $4500.
Sell gold from the resistance level of $4785 with a target of $4500 and a stop loss of $4820.
Note: These recommendations are suitable for medium-to-long-term traders, provided there is strict adherence to capital and risk management
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Daily Technical Analysis of Gold/US Dollar (XAU/USD):
Gold prices have returned to decline as I predicted. During Thursday's trading session, the gold price index rose to the resistance level of $4800 per ounce amid improving sentiment regarding the nearing end of the conflict in the Middle East. However, investor sentiment quickly shifted back to risk aversion and a preference for buying the US Dollar as a safe haven. Consequently, gold prices rapidly retreated to the $4553 support level, giving up nearly all its gains for the week. Prices are currently stabilizing around the $4635 level at the time of writing this analysis.
On our exclusive live free trading recommendations page, prior to today's events, we recommended selling gold from the $4790 resistance level. Indeed, the recommendation reached the entry point and is now harvesting profits as it heads toward the target.
Why did gold prices decline again?
Via the best gold trading firms: Gold and silver prices fell by 3% and 5% respectively after President Trump’s statements dashed investor hopes for a clear timeline to end the war.
Today’s price decline is attributed to fears that rising oil prices will lead to increased inflation, which may prompt central banks to adopt tighter monetary policies. Gold, which yields no income, tends to rise when interest rates are low. Gold prices have fallen by approximately 11% since the start of the war, retreating from record highs.
The Bearish Scenario for Gold Prices is Gaining Strength
On the daily chart, gold prices are leaning toward a renewed decline. Technically, breaking the $4500 support barrier will support the bears in controlling the trend, thereby launching toward stronger bearish levels. The 14-day Relative Strength Index (RSI) is around a reading of 44, below the neutral line, while the MACD indicator shows a clear downward tilt. The 100-day Simple Moving Average (SMA) has crossed back below the 200-day SMA, which technically supports the bears for a move toward stronger bearish levels in the coming days.
However, gold prices are still on track for weekly gains exceeding 5%, supported by their earlier rebound this week after Trump indicated that the US might call off a strike on Iran within two to three weeks.
Trading Advice:
Dear TradersUp trader, the gold market will remain volatile and unstable until the Iran war ends, and oil prices reach record highs.
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