The gold price kicked off the week on a strong note, testing the $2,400 level early Monday as the US Dollar dropped on dovish Fed expectations and a risk-on mood. Renewed concerns in the Middle East also supported the safe-haven appeal of gold, with buyers eyeing a sustained recovery above the 21-day SMA.
Analysis and Breakdown:
Gold price is on the rise, thanks to a combination of factors. The US Dollar’s decline, driven by expectations of a dovish Fed stance, has boosted the appeal of gold as a safe-haven asset. Additionally, tensions in the Middle East have further fueled demand for the precious metal.
Technical analysis shows that gold buyers are in control, with key support levels holding strong. A daily close above the 21-day SMA at $2,392 could signal a move towards the $2,400 mark, with further upside targets at $2,412 and $2,425. On the downside, a break below $2,360 could trigger a downtrend towards the 100-day SMA at $2,327.
Overall, the current market conditions suggest that gold price is likely to continue its upward trajectory, driven by central bank decisions and geopolitical tensions. Investors should keep a close eye on key support and resistance levels to make informed trading decisions.