Technical analysis – Gold rises to one-month high near 5,400 on safe-haven demand
- Gold extends its four day rally into record territory.
- Price spikes as escalating geopolitical tensions fuel flight to safety.
- Momentum indicators reinforce the bullish bias amidst the angst.
Gold opened with a bullish gap on Monday, rising more than 2.5% to reach a one month high near 5,400, as the conflict in the Middle East jolted markets. The surge came after the US and Israel launched major strikes on Iran, intensifying geopolitical tensions and deepening global economic uncertainty.
The momentum indicators support the upside. The MACD is extending above both the zero line and the red signal line, indicating strengthening bullish momentum. Meanwhile, the RSI is sloping upward toward overbought territory, reflecting heightened risk that is pushing gold prices closer to record highs.
Resistance above the January peaks near 5,420 lies at the record high of 5,597, reached on January 29 – just shy of the 6,000 level. A break above this area would mark a full recovery of the pullback from the January peak toward the February 2 low of 4,400. Beyond that, gold could target the 123.6% Fibonacci extension of that downleg at 6,587, entering uncharted territory.
On the downside, a potential pullback may first seek support at 5,250, the former resistance now turned support. Beneath that, 5,100 comes into play, sitting just below the 61.8% Fibonacci level at 5,141. A further decline would expose the 20 day simple moving average (SMA) at 5,057, followed by the psychological 5,000 mark. Below that, 4,859 remains a significant support level.
Overall, Gold’s broader uptrend is reaccelerating, after a brief consolidation period, and prices may continue to be repriced higher toward fresh record highs as markets enter a new era of geopolitical uncertainty, intensifying safe haven demand.
Author
Nicole joined Trading Point as a Market Analyst in January 2025. She holds a BA in English Literature from Kingston University, London, and an MA in Applied Linguistics (Research Methodology) from the University of Southampton with distinction.
