FUNDAMENTAL OVERVIEW Gold has come under renewed pressure on Tuesday after the markets got a bit scared following Iran’s refusal to participate in the Islamabad talks due to the US blockade in the Strait of Hormuz.
FUNDAMENTAL OVERVIEW Gold has come under renewed pressure on Tuesday after the markets got a bit scared following Iran’s refusal to participate in the Islamabad talks due to the US blockade in the Strait of Hormuz. Most of the losses were then pared after Trump extended the ceasefire to allow more time for Iran to put forward a proposal to end the war but didn’t lift the blockade.
There’s no deadline for this latest extension, so we might just get stuck in this new situation until the bombs start dropping again or they finally reach a deal. For now, the short-term bias is neutral to bearish as we head into the weekend without clear signs of improved relations. Nonetheless, the downside should remain limited amid positive expectations and a resolution should trigger a rally towards the 5,000 level.
On the other hand, if the war resumes, gold prices are likely to quickly fall back into the 4,000 level. GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAME On the daily chart, we can see that gold is just consolidating awaiting new catalysts to push it into either direction. Right now, we are trading around the same levels we’ve been at the start of the month.