GoldLong
Gold falls on Middle East truce
The Asian day's drop in gold was attributed to lower safe haven demand following reports of a possible ceasefire agreement between Israel and Hezbollah. The agreement, brokered by the United States, would include a 60-day ceasefire and a reduction in military actions. However, the persistence of conflicts in the region and tensions between Russia and Ukraine continue to add volatility to the market.
Gold prices retreat: technical analysis
Gold prices fell during Asian trading on Monday. Spot gold lost 1.6% to settle at $2,670.82 per ounce, while December futures fell 1.5% to close at $2,697.10. These declines were partially mitigated by the weakness of the dollar, which retreated from 13-month highs following the nomination of Scott Bessent as U.S. Treasury Secretary. Looking at the chart currently at the European pre-open, a possible downside breakout has already been marked.
Looking at the chart it seems that the price has returned to prices of November 21. In the European day it seems to be recovering its luster little by little and we will have to see if the price evolution pierces its previous support at 2,685 dollars, with RSI currently at 37% and observing the crossing of averages still predominantly bullish, it does not seem that this ascent to new highs will be stopped for the time being.
While platinum and silver also registered losses, industrial metals such as copper showed gains, encouraged by expectations of key economic data from China.
Ion Jauregui - Activtrades Analyst
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