Gold is re-attempting bids above $5,000 in Monday’s Asian trades, fading a brief dip to monthly lows near the $4,970 region. The headlines surrounding the Middle East war continue to impact the USD and thus the bright metal.
Gold battles the critical $5,000 psychological level amid a bull-bear tug-of-war as traders remain divided between hopes for the re-opening of the Strait of Hormuz and looming risks that the US could seize the critical oil depot on Iran’s Kharg Island.
The WSJ reported late Sunday that the White House plans to announce that multiple countries have agreed to form a coalition to escort ships through the corridor, adhering to US President Donald Trump’s calls to the allies to help secure the Strait.Trump has warned that NATO faces a “very bad” future if US allies fail to assist in opening up the Strait of Hormuz, the Financial Times (FT) reported.
These mixed headlines fail to provide a fresh lift to the US Dollar (USD) while keeping Gold prices in limbo.
Later in the day, the Iran war headlines will continue to play a pivotal role in the Gold price action as markets bet on the next direction in Oil prices.
Gold could risk a brief corrective pullback as traders might cash in on their USD longs ahead of Wednesday’s US Federal Reserve (Fed) monetary policy decision.
Daily technical analysis
The near-term tone is mildly bullish, with price holding just above the 50-day SMA near $4,955 and comfortably above the 100- and 200-day SMAs around $4,575 and $4,060, respectively. The 21-day SMA around $5,115 has flattened but still hovers above spot, indicating a shallow consolidation within a broader uptrend rather than a full reversal. The RSI at 47 remains close to the neutral midline, suggesting momentum has cooled without shifting decisively in favor of sellers.
Immediate support emerges at the 50.0% Fibonacci retracement of the $4,402–$5,598 rally at $5,000, with the 38.2% retracement at $4,859 reinforcing a lower support area if the metal extends its pullback. Below that, the clustered 50-day and 100-day SMAs would strengthen the $4,950–$4,575 region as a broader demand zone. On the upside, initial resistance aligns with the 21-day SMA near $5,115, followed by the 61.8% retracement at $5,141, where a break would open the way toward the $5,342 level marked by the 78.6% retracement. A daily close above that latter barrier would re-expose the recent $5,598 high.
GOLD tests 50-day SMA support, with eyes on Middle East war
Gold is re-attempting bids above $5,000 in Monday’s Asian trades, fading a brief dip to monthly lows near the $4,970 region. The headlines surrounding the Middle East war continue to impact the USD and thus the bright metal.
Gold battles the critical $5,000 psychological level amid a bull-bear tug-of-war as traders remain divided between hopes for the re-opening of the Strait of Hormuz and looming risks that the US could seize the critical oil depot on Iran’s Kharg Island.
The WSJ reported late Sunday that the White House plans to announce that multiple countries have agreed to form a coalition to escort ships through the corridor, adhering to US President Donald Trump’s calls to the allies to help secure the Strait.Trump has warned that NATO faces a “very bad” future if US allies fail to assist in opening up the Strait of Hormuz, the Financial Times (FT) reported.
These mixed headlines fail to provide a fresh lift to the US Dollar (USD) while keeping Gold prices in limbo.
Later in the day, the Iran war headlines will continue to play a pivotal role in the Gold price action as markets bet on the next direction in Oil prices.
Gold could risk a brief corrective pullback as traders might cash in on their USD longs ahead of Wednesday’s US Federal Reserve (Fed) monetary policy decision.
Daily technical analysis
The near-term tone is mildly bullish, with price holding just above the 50-day SMA near $4,955 and comfortably above the 100- and 200-day SMAs around $4,575 and $4,060, respectively. The 21-day SMA around $5,115 has flattened but still hovers above spot, indicating a shallow consolidation within a broader uptrend rather than a full reversal. The RSI at 47 remains close to the neutral midline, suggesting momentum has cooled without shifting decisively in favor of sellers.
Immediate support emerges at the 50.0% Fibonacci retracement of the $4,402–$5,598 rally at $5,000, with the 38.2% retracement at $4,859 reinforcing a lower support area if the metal extends its pullback. Below that, the clustered 50-day and 100-day SMAs would strengthen the $4,950–$4,575 region as a broader demand zone. On the upside, initial resistance aligns with the 21-day SMA near $5,115, followed by the 61.8% retracement at $5,141, where a break would open the way toward the $5,342 level marked by the 78.6% retracement. A daily close above that latter barrier would re-expose the recent $5,598 high.
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