XAU/USD Chart Analysis Following Israel-Iran Strikes
In 2025, the price of gold continues to form a long-term upward trend, highlighted by the black line. The red line previously acted as resistance, resulting in the formation of a contracting triangle on the XAU/USD chart – a typical sign of market equilibrium.
However, this red line was breached (as indicated by the arrow) amid news of the exchange of strikes between Israel and Iran. In response, gold price movements have more clearly outlined the rising blue channel, which began to take shape in the second half of May.
Over the weekend, the strikes continued, and on Monday morning, trading opened with a modest bullish gap. This indicates that geopolitical risk concerns are helping to keep gold prices anchored above the red line.
What could happen to the price of gold next?
Much will depend on how the situation in the Middle East develops. Should the exchange of strikes between Iran and Israel subside and official statements offer hope for de-escalation, a pullback from the upper boundary of the blue channel is likely.
If such a scenario plays out, technical analysts may focus on the support zone around $3,390–3,400 on the XAU/USD chart, formed by:
→ the psychological level of $3,400;
→ the red line, which previously acted as resistance;
→ the median of the blue channel.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
In 2025, the price of gold continues to form a long-term upward trend, highlighted by the black line. The red line previously acted as resistance, resulting in the formation of a contracting triangle on the XAU/USD chart – a typical sign of market equilibrium.
However, this red line was breached (as indicated by the arrow) amid news of the exchange of strikes between Israel and Iran. In response, gold price movements have more clearly outlined the rising blue channel, which began to take shape in the second half of May.
Over the weekend, the strikes continued, and on Monday morning, trading opened with a modest bullish gap. This indicates that geopolitical risk concerns are helping to keep gold prices anchored above the red line.
What could happen to the price of gold next?
Much will depend on how the situation in the Middle East develops. Should the exchange of strikes between Iran and Israel subside and official statements offer hope for de-escalation, a pullback from the upper boundary of the blue channel is likely.
If such a scenario plays out, technical analysts may focus on the support zone around $3,390–3,400 on the XAU/USD chart, formed by:
→ the psychological level of $3,400;
→ the red line, which previously acted as resistance;
→ the median of the blue channel.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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.
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.