- Safe-haven demand lifts Gold as Middle East conflict persists
- Bulls target 5,250 while investors await fresh US inflation data
- Bullish momentum gradually builds above key ascending trendline
is ticking higher for a second straight day, attempting to reclaim 5,200 and staying close to a one-week high, touched on Tuesday. Notably, it is trading well above the medium- and long-run moving averages (SMA) and the key short-run ascending trendline drawn from December.
Strikes between the US, Israel, and Iran are marking a twelfth consecutive day, potentially supporting the gold price. Meanwhile, investors are preparing for today’s fresh US data.
Technical indicators are supporting a neutral-to-bullish momentum, with the RSI flatlining between the neutral level and the overbought area. Additionally, the stochastic oscillator’s %K line is drifting higher, having crossed above the neutral level and hovering above its moving average %D line. Meanwhile, the MACD stays in positive territory, slightly below its signal line.
If gold moves further higher, then it may immediately test 5,250. Higher, it might face strong resistance at 5,350, which hosts the upper Bollinger band and the 78.6% Fibonacci retracement of the January – February sharp drop.
On the other hand, if gold faces a correction, then it may find key support in the 5,000-5,100 area, which contains the key short-run ascending trendline and the 20-day SMA. Further down, it might find solid support in the vicinity of 4,900, where the 50-day SMA is joining the lower Bollinger band.
In summary, gold is trying to reclaim 5,200 for a second straight day, while persisting tensions in the Middle East still dominate headlines. If it manages to decisively break above 5,250, then momentum could potentially become clearly bullish.
