Gold Daily | Geopolitical Tensions Support Gold Amid Dollar Strength, Testing Key Technical Levels

【Latest Gold Price and Recent Trends】

On Monday, gold prices experienced a slight decline to $3,359.99/oz, down 0.2%, as a strong dollar made gold more expensive for foreign buyers. Despite increased geopolitical tensions in the Middle East, investors remain cautious, awaiting Iran's response to U.S. attacks. The global market is bracing for potential reactions to the U.S.'s military actions, with underlying support for gold due to geopolitical uncertainties.

【Technical Analysis】

Gold prices have pulled back from recent highs and face selling pressure, testing key support levels. On the daily chart, prices are approaching the 21-day SMA at $3,351/oz, a crucial short-term support. If prices close below this level, a new downtrend towards the 50-day SMA at $3,321/oz may form. The RSI points to potential bearish momentum, although remaining above the midline offers hope for buyers.

【Market Sentiment and Economic Background】

The gold market is influenced by ongoing Middle Eastern tensions and expectations around the Federal Reserve's policies. Investors are closely monitoring the potential for geopolitical escalation and upcoming U.S. economic data, including PCE inflation figures and Fed Chair Powell's testimony. The Fed's current stance on interest rates, with no change expected soon, and the geopolitical environment continue to support gold prices as a safe haven.

【Analyst Opinions】

Analysts highlight the impact of geopolitical uncertainties on supporting gold prices. The potential for further escalation in the Middle East could drive gold prices back up, with technical resistance at $3,377/oz and further targets at $3,400/oz and $3,440/oz if the situation worsens. Conversely, a stable geopolitical landscape and stronger dollar could see prices testing lower support levels around $3,330/oz. Economic indicators and Fed policy directions will play a critical role in shaping gold's trajectory in the near term.