Late trading in Asia on Monday (May 20)RidikacasinoSpot gold maintained a strong intraday rally, once setting an all-time high of $2446.10 / oz, up nearly $30 on the day. FXStreet analyst Lallalit Srijandorn wrote the latest article to analyze the technical trend of gold prices.
'Gold prices rose strongly on Monday, 'Srijandorn wrote. Gold hit an all-time high of nearly $2446 an ounce in Asian trading on Monday on renewed hopes of a Fed rate cut and rising geopolitical tensions in the Middle East. At the same time, rising tensions between Russia and Ukraine, both of which attacked each other over the weekend, also boosted demand for safe havens.
Later on Monday, gold traders will follow speeches by Fed officials Bostick, Barr, Waller, Jefferson and Mestre, which may provide some insight into the future direction of monetary policy, Srijandorn added. Cautious or hawkish comments from Fed officials could limit the upside of gold prices.
Traders have been heightening bets in recent trading days that the Fed could lower borrowing costs as early as September, which will boost gold, which pays no interest.
Iranian President Ebrahim Raisi and Iranian Foreign Minister Hossein Amirabdollahian were killed in a helicopter accident on May 19th. Leahy's death comes at a time of unrest in the Middle East. In April, Iran launched unprecedented missile and drone strikes against Israel, and the Jewish state has entered its seventh month of war to drive Iranian-backed Hamas fighters out of the Gaza Strip.
"the rise in gold prices is driven by news of uncertainty about the situation in Iran," said Nicholas Frappell, global head of markets at ABC Refinery institutions in Sydney.
Analysis of the latest technology of gold
FXStreet analyst Lallalit Srijandorn pointed out that gold prices showed a bullish trend on Monday. Gold prices have broken through the upward trend channel that has been formed since May 2. Technically, gold remains bullish on the four-hour chart as it sits above the 100-cycle index moving average (EMA), while the relative strength index (RSI) stays above the midline, near 82.50.
However, RSI's overbought status suggests that further consolidation cannot be ruled out before preparing for gold's short-term upside.
Srijandorn said that the current initial break around 2440 resistance, will see gold prices rebound to a potential upward barrier to the psychological level of $2500 / oz.
(4-hour chart of spot gold)
On the other hand, a shift from resistance to support of $2415 an ounce would be gold's first downside target, Srijandorn added. The key support level is at the round $2400 / oz mark, followed by the May 16 low of $2370 / oz.
Beijing time 13Ridikacasino35, spot gold is at 2444.02 US dollars per ounce.