In the wake of growing tensions between Iran and Israel, XAUUSD (Gold) has once again become the focal point for many traders seeking stability. Let’s break down the key technical levels and how global events could shape market behavior in the days ahead.
Resistance at 3,446.87 – A Barrier to Watch
Gold’s price is currently testing the resistance zone at 3,446.87. As the geopolitical situation worsens, we might see an influx of risk-off flows, pushing the price to break past this level. A clear break above would signal further bullish potential, especially if risk aversion continues to dominate global markets.
Demand Zone at 3,392.29 – Strong Support
The Demand Zone at 3,392.29 remains a critical level. The price has reacted positively to this support area multiple times, suggesting that institutional buying could be taking place in anticipation of further upside or protection against geopolitical risks.
Volume Spikes and Market Sentiment
Trading volume has been a key indicator of increased market reaction to news. We’ve seen strong volume surges during periods of geopolitical escalation, confirming the heightened market sensitivity. Keep an eye on volume during any major news announcements, as this could provide a clearer view of potential market direction.
RSI Analysis: 52.31 – Neutral Momentum
The RSI reading of 52.31 reflects a neutral market, neither overbought nor oversold. However, the influence of geopolitical risks means that this neutral stance could shift rapidly, especially if global tensions escalate, causing a surge in Gold’s demand.
Strategic View:
Bullish Scenario: If XAUUSD breaks above 3,446.87, look for continuation plays as global risks increase.
Bearish Scenario: A failure to hold at the demand zone could lead to short opportunities or corrective moves.
Traders should remain cautious and adjust strategies accordingly, as geopolitical risks can lead to unexpected market volatility.
Stay alert and manage your risk accordingly!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.