Gold tracks extra sideways awaiting additional US-Iran developments

The market mood might be a tad bit more pessimistic today but we’re not quite in a full risk-off wave. US futures are down but major currencies aren’t really doing much while precious metals and the bond market are seeing light changes for the most part. Of note, gold is down just 0.1% as it currently keeps around $4,640 levels on the day.

That fits with the range around $4,600 to $4,700 still, since the drop on Thursday last week. As US-Iran tensions remain, it is keeping traders on edge but buyers look to be trying to hold near-term control in the precious metal.

They defended the 100-hour moving average (red line) on a few occasions already since last week. But so far today, we are seeing a bit of a crack in the armor. That as price action now drops a little below the key technical level, seen near $4,660 currently. Keep below that and the near-term bias holds more neutral instead.

For now, sellers are also looking to try and stay in the game to push their own agenda. And that not only on the near-term chart above, but also on the daily chart seen below:

The steep drop in gold at the end of last month saw a defense put up at the 200-day moving average (blue line). That led to a solid bounce back to test the 100-day moving average (red line), in which buyers momentarily claimed a break. But as all hell looks to break loose tomorrow, traders are nervous and we’re seeing gold fall back slightly towards the key level.

That is seen around $4,658 now and holding below that will keep buyers in check at least. That as sellers have a key technical level to lean on in trying to make any further moves this week.

All eyes are now on the headlines and what comes next on the US-Iran conflict. A lot of questions still remain.

• Is there going to be a ceasefire of sorts or a further extension to try and keep the peace?
• If not, will US president Trump really follow through on his threats and blast Iran?
• If so, how will Iran respond and will Tehran still be able to fight back?
• More importantly, what happens next to the Strait of Hormuz? Is it going to stay in de facto closure? For how long?