Gold Price Forecast: XAU/USD regains poise above $2,350 amid Iran-Israel conflict

Gold price resumes uptrend on Middle East escalation after Iran attacked Israel over the weekend.
US Dollar stays uninspired by geopolitical tensions, as risk sentiment remains in a sweeter spot.
Gold price likely to stay supported ahead of top-tier US Retail Sales data.

Dhwani Mehta FXStreet

Gold price is back in the green above $2,350 early Monday, having witnessed the long-due correction from record highs of $$2,432 on Friday.

Gold price opens higher, then retraces

Gold price saw a positive start to the week in early dealings, mainly lifted by the escalation in the conflict between Iran and Israel over the weekend. Investors scurried for safety in the traditional safe haven, as traders geared up for a new week following Iran’s drones attack on Israel late Saturday.

Gold price stays underpinned by markets’ fears that Iran’s unprecedented weekend strike on Israel could fuel rounds of retaliation. However, the UK, France and Egypt condemned Iran's action while Saudi Arabia called for restraint, offering some comfort to markets, as risk sentiment remains in a sweeter spot in early Asia.

The S&P 500 futures gain 0.30% on the day, reflecting the market optimism, which is capping the further upside in Gold price.

Looking ahead, if the Middle East conflict intensify, Gold price is likely to see an extension of the rebound toward $2,400. But a resurgent demand for the US Dollar on increased safe-haven flows and hawkish US Federal Reserve (Fed) expectations could act as a headwind to the Gold price upswing.

The focus will also be on the high-impact US Retail Sales data due later on Monday, with the monthly headline figure to increase by 0.3% in March, slower than February’s 0.6% rise.

XAU/USD

Overview
Today last price	2358.4
Today Daily Change	14.11
Today Daily Change %	0.60
Today daily open	2344.29

Trends
Daily SMA20	2249.25
Daily SMA50	2139.11
Daily SMA100	2086.35
Daily SMA200	2009.51

Levels
Previous Daily High	2431.61
Previous Daily Low	2333.96
Previous Weekly High	2431.61
Previous Weekly Low	2303.02
Previous Monthly High	2236.27
Previous Monthly Low	2039.12
Daily Fibonacci 38.2%	2371.26
Daily Fibonacci 61.8%	2394.31
Daily Pivot Point S1	2308.3
Daily Pivot Point S2	2272.3
Daily Pivot Point S3	2210.65
Daily Pivot Point R1	2405.95
Daily Pivot Point R2	2467.6
Daily Pivot Point R3	2503.6

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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