Gold glimpse: What’s shaping the market today?

Daily chart of Comex Gold looks very impressive and showing bullish momentum. The way bulls are reacting it seems like they are driving the car and heading to north side. We will keep our view bullish on the yellow metal as long as geopolitical tension remains exist and  it trades and sustain above the $2400 level on daily closing basis. 

An upward slope of 50 EMA line is enhancing the confidence of bulls and providing   strength. From technical price pattern perspective we can see a cup and handle pattern is in process of formation where we are in the formation of handle which indicates that further buying is still awaited and it’s a recent development.

Gold prices (XAU/USD) are trading lower around $2,430 during the early Asian session on Monday. The modest rebound in the US Dollar (USD) is weighing on the yellow metal. However, the decline might be limited due to escalating geopolitical tensions in the Middle East. ."We expect gold to remain in demand amid Middle East tensions, and thus the price should remain well-supported."

Last week, Comex Gold (XAUUSD) experienced significant volatility. At the beginning of the week, precious metal saw a sharp decline. However, by midweek, there was a notable recovery from the lower levels.

Comex Gold reached a weekly high of $2458.87, before falling to a low of $2364.39. It eventually closed the week at $2431.26, marking a slight decline of 0.46% on a weekly basis.

This week, key US economic data with significant impact includes Core PPI m/m, PPI m/m, Core CPI m/m, CPI m/m, CPI y/y, Core Retail Sales m/m, Retail Sales m/m, and unemployment claims. Keep an eye on the macro news market may get volatile. 

Technical support and resistance levels of Comex Gold (XAU/USD)

Comex Gold (XAUUSD) has immediate support and bounce back zone at $2407 to $2396. From these levels it can bounce back. But if it breaks these levels too and sustain below that then we may see panic till $2380/$2376.At around $2375 to $2372 again it can take support and bounce. Break and sustain below which will take it to $2365 and then $2352. 

Gold has major support at around $2350 to $2345. Any day close below $2345 will start panic in Gold and we may see big downside move in it.

Comex Gold (XAUUSD) has immediate resistance around $2440 to $2445. From these levels it can face hurdles and it may come down. But if it breaks these levels then we may see $2453—$2463 and then $2474 even $2500 psychological level also can be seen.  At around $2475/$2477, there is crucial resistance line coming up but we will take $2484/$2485 which is its previous swing high as major resistance in it.

Gold if any day give closing above $2485 with good volumes, then be ready for next big upside move in it. Target of same we will update once it breaks the mentioned levels on charts.

Geopolitical tension around the world

The heightened tensions in the Middle East are likely to support XAU/USD, with reports indicating an escalation in the conflict. On Sunday, Defence Minister Yoav Gallant informed US Defence Secretary Lloyd Austin that Iran's military activities suggested preparations for a major strike on Israel, according to Axios writer Barak Ravid, citing a source familiar with the call.

Increased volatility and geopolitical risks are expected to boost safe-haven flows, benefiting gold. "In the medium term, the outlook for gold remains positive, with any declines likely to be brief due to underlying macroeconomic factors.