XAU/USD outlook: Gold spikes above $2,400 again as deteriorating geopolitical situation boosts demand
XAU/USD
Gold probed above $2400 level for the second time, inflated by increased safe-haven demand following Israel’s attack on Iran early Friday.
Although the spike above $2400 (the metal’s price reached $2417) was so far short-lived, near-term focus remains at the upside, as fears of further escalation in the region will continue to fuel demand.
Technical picture is firmly bullish, as indicators are in bullish setup and recent dips were contained by rising 10DMA.
However, overbought RSI and weakening positive momentum warn that price may hold in extended consolidation, before larger bulls resume, as next target at $2500 is coming in focus.
Rising 10DMA ($2363) offers immediate support, with extended dips to find ground above $2300 (psychological, reinforced by rising 20DMA) to keep larger bulls unharmed.
Conversely, loss of $2300 handle to weaken near-term structure and risk test of next pivotal support at $2260 (Fibo 38.2% of $1984/$2431).
Res: 2400; 2417; 2431; 2500.
Sup: 2362; 2364; 2326; 2300.
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Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
