XAUUSD

Despite the high tension in the Middle East, the strong performance of the dollar index is putting pressure on the spot gold prices. Spot gold has recently pulled back from the level of 2760 to trade around 2725. Upcoming unemployment claims and PMI data from the US could cause volatility in the markets. In the short term, the precious metal is fluctuating between the 2710 – 2730 range. Continued trading within this range indicates that investors are in a decision-making phase. Sustained movements above the 2730 level could reinforce a positive outlook, while staying below the 2710 level might bring a negative scenario to the forefront.

From a technical perspective, it is observed that spot gold retreated again after approaching the 2730 resistance on the 4-hour chart. The levels of 2710, 2700, and 2690 are monitored as support, while the levels of 2730, 2740, and 2750 are watched as resistance in upward movements. The RSI indicator is at the 55 level and showing a positive trend. With a 0.43% increase compared to the previous day, the fact that spot gold remains above the 55-period exponential moving average could enhance the potential for upward movement. However, the stance at the 2700 level could play a critical role in the continuation of declines.