Gold has lost some of its shine in recent days as the Israel-Iran conflict pushed traders back into the U.S. dollar for safety. Hawkish Fed commentary, especially the focus on sticky goods inflation, also helped lift USD demand.
That said, the outlook could flip fast if the U.S. confirms direct involvement in the Middle East conflict, which might shift the safe haven flows back in gold’s favor.Last week, we spotted XAU/USD bouncing off ascending channel support on the four-hour chart, right around the moving averages. The pair went on to print new June highs, then pulled back toward the $3,360 zone.
Now, attention is on the $3,350 area, where the channel support lines up with the S1 Pivot Point around $3,335 and the 100 SMA on the four-hour chart.
A bounce from that zone could set up another push toward the $3,400 handle or even the $3,450 highs.
On the flip side, if the pullback gains steam and price breaks below the S1 Pivot and 200 SMA, then we might be looking at a deeper move toward $3,300 or $3,250 previous areas of interest.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!