On evaluation of the movements of the on different time chart patterns since the beginning of this week, I observed that though Iran and the U.S. reached an understanding on Tuesday on the main “guiding principles” in talks aimed at resolving their longstanding nuclear dispute, it does not mean a deal is imminent, Iran Foreign Minister Abbas Aragchi said.
Undoubtedly, gold futures experienced a steep fall on Tuesday amid surging hopes for easing tensions between the U.S. and Iran, as they were nearing success on the main issue of keeping the nuclear enrichment program. However, repeated emphasis on curtailing its missile power kept the deal from being a complete success.
I observed that the current developments between the two sides have heightened the skepticism over the potential for further progress.
Meanwhile, negotiators from Ukraine and Russia wrapped up the first day of U.S.-brokered peace talks in Geneva on Tuesday, and President Donald Trump urged Kyiv to move swiftly toward an agreement to end the four-year-long conflict.
On Tuesday, gold and extended losses from the prior session, as a stronger dollar put pressure on precious metals while investors remained cautious ahead of more key U.S. economic data this week.
On Wednesday, gold futures experienced a reversal from the lows tested on Tuesday but still faced resistance at the 9 EMA ($4,972), while finding it difficult to hold the immediate support at the 20 EMA ($4,928) in the daily chart.
On the other hand, silver futures are still trading below the 50 EMA ($79.792), despite find a reversal from the lows, tested yesterday, indicating extending bearish pressure at the current level due to the formation of bearish crossovers by the 9 EMA which has come even below the 50 EMA after piercing the 20 EMA, while the silver futures are currently trading much below the 9 EMA.
Moreover, the spot , despite facing some resistance at 67.21, is trying to hold the immediate support at 65, from where a reversal could be seen in today’s session.
I find that since the gold futures tested a low at $4,865 yesterday and silver futures tested a low at $72, indicating reduced trading activity, influenced by diminishing demand in Asia as China’s Lunar Year commences.
I anticipate that it remains uncertain whether current market dynamics will drive the prices substantially lower or if investors will respond to the recent reduction or exit from gold and silver.
In conclusion, I observe that focus will remain on further progress over a compatible deal between the U.S. and Iran to avoid direct confrontation, while any news on easing negotiations, possibly in April, between them will trigger a selling spree in gold and silver futures.
Disclaimer: Readers are advised to take any position in gold and silver futures at their own risk, as this analysis is based only on observations.
