Gold Price Technical Analysis: Safe Haven Appeal Amidst Gaza-Israel Conflict
Gold’s safe haven appeal persists amidst the Gaza-Israel conflict, with key technical analysis indicators providing guidance. Support lies at $1,835-$1,833, with a break signaling potential correction to $1,820-$1,810.
A death cross on the daily chart indicates bearish sentiment, while bullish scenarios await sustained strength above $1,865, targeting resistance at $1,885 and $1,900. Traders should weigh both bearish and bullish scenarios alongside broader market factors for informed decision-making.
Blog written by: Glow Node
Bearish Scenario
- There is an observation that if the Gold price falls, it is likely to find support in the $1,835-$1,833 region. This area is identified as a multi-day-old trading range resistance breakpoint.
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- If the price convincingly breaks below the $1,833 level, it could indicate that the recent corrective bounce has come to an end. This may lead the Gold price to the $1,820 support level, with the potential to reach a multi-month low around $1,810.
- The occurrence of a death cross on the daily chart is noted, where the 50-day Simple Moving Average (SMA) is well below the 200-day SMA. This is considered a bearish signal, and further selling could be expected.
Bullish Scenario
- On the bullish side, buyers may wait for the Gold price to sustain strength beyond the $1,865 level.
- The next relevant resistance level is located near $1,885, followed by the psychological round figure of $1,900, which is close to the 50-day SMA. This level is seen as a key pivotal point.
- A continuation of buying interest beyond these levels could suggest that the Gold price has potentially formed a near-term bottom and may aim for testing the 200-day SMA, situated around the $1,928-$1,930 region.
