Last week, gold took a hit from all sides. The biggest blow came from stalled US-Iran talks over the Middle East crisis, which covered everything from security in the Strait of Hormuz to lifting the blockade. Failed face-to-face meetings in Pakistan and the last-minute cancellation of an American negotiator visit poured more gasoline on the fire, keeping escalation risks alive and sending oil prices soaring.
Adding to gold's woes, the US currency flexed its muscles. Investors flocked to the greenback as a safe haven, betting on geopolitical turbulence and a more hawkish tilt from the Federal Reserve (Fed). For bullion, which generates no income, this is a toxic combination. Rising real yields and a stronger dollar make the precious metal more expensive for foreign buyers—an open invitation to sell into rallies and lock in profits.
But here is a twist: the ceasefire is still technically in place, and both sides are trying to respect it, even though negotiations have hit a wall. This means the conflict could ease almost overnight—a scenario that would completely flip the script on bullion prices.
Looking at the charts, gold is trading in a flat right now. However, beneath the surface, indicators are leaning bullish. The Relative Strength Index (RSI) is holding above 50, which is a clear sign that buying sentiment has a pulse. Meanwhile, the MACD has moved into positive territory, confirming that upward momentum is slowly building. What's the next big test overhead? Resistance at $4,850 per ounce. If this level is broken, the real fireworks will begin.
The final recommendation:
— Buy gold at the current price, targeting $4,850 within one to two weeks.
— As a safety net, place a Stop Loss order just below the $4,650 support. Therefore, if the precious metal heads the wrong way, the position will be protected.
This content is for informational purposes only and is not intended to be investing advice.
