Gold at crossroads: Breakout above $4,235 or drop below $4,180?

Gold consolidates above $4180
Resistance $4235 likely to cap gains.
Strong Dollar Index keeps Gold under pressure.
Rising 10 year bond yields challenge Gold.

Sunil Kumar Dixit SK Charting

Current market structure

Gold remains relatively bearish on higher time frames as broad structure witnesses lower high and lower low.

Small time frames show consolidation above recent lows after broader sell off.

Buyers have been defending $4180 local demand zone while some accumulation is attempting to break immediate resistance $4220 above which next challenge sits at $4233 followed by major overhead supply zone $4253
If bulls succeed reclaiming $4253 with a decisive close, a further extension can take recovery a tad higher to $4285

Fundamental drivers

Strong Dollar Index, stability above 100.80 keeps Gold under pressure.

US-Iran peace agreement reduces risk sentiments and eases global tensions.

Federal Reserve hawkish stance reduces odds of rate cut.

Opening of Hormuz Strait eases Crude Oil prices.

Institutional ETF demand has weakened recently as also central bank Gold purchases decline recently.

Technical drivers

Small time frames show oversold conditions and some rebound attempts are on cards.

Sellers need additional liquidity on buy side to reposition their selling bets on higher side.

Bullish trend confirmation on strong breakout above $4255
Bearish trend continuation on strong breakdown below $4180-$4140

Author

Sunil Kumar Dixit

SK Charting

Sunil Kumar Dixit is Chief Technical Strategist and founder of SK Charting, a research firm based in India. He tracks Precious Metals, Energy, Indices and Currency Pairs. He also participates as an expert panellist on Channel Television, Nigeria.

GBP/USD climbs above 1.3250 as markets assess UK PM Starmer resignation

GBP/USD regains its traction and trades inn positive territory above 1.3250 on Monday, following a drop below 1.3200 with the immediate reaction to UK PM Keir Starmer's resignation announcement.

EUR/USD holds above 1.1450 on improving risk mood

EUR/USD rebounds from session lows and trades virtually unchanged above 1.1450 in the American session on Monday. News of the US and Iran making progress in the latest round of talks help the market mood improve and allow the pair to keep its footing.

Gold clings to gains near $4,200 as tensions in Middle East ease

Gold stays in positive territory ar around $4,200 on Monday, looking to snap a three-day losing streak. News of US and Iran making progress in the latest round of talks seems to be helping the precious metal hold its ground at the beginning of the week.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

Is Shiba Inu dead or just in a crisis? The data behind SHIB's 95% crash

SHIB, the dog-themed meme coin that became one of the biggest success stories in crypto and turned early buyers into crypto millionaires, is facing tough times. Its price has fallen more than 32% so far this year, and it is down 95% from its all-time high in 2021. Is SHIB simply another fading meme coin, or is the market overlooking a possible recovery story?

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.