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Gold price (XAU/USD) rallied more than 1% on Monday amid safe-haven flows on the back of concerns about a wider conflict in the Middle East and Ukraine’s surprise offensive attack on Russia. Furthermore, dovish Federal Reserve (Fed) expectations kept the US Dollar (USD) bulls on the defensive and pushed the non-yielding yellow metal back closer to the monthly top during the Asian session on Tuesday.That said, the upbeat market mood prompts some selling around the Gold price during the Asian session on Tuesday. Bulls also seem reluctant and prefer to wait for the release of the US inflation figures before positioning for any further appreciating move. Nevertheless, the commodity remains close to the all-time peak touched in July and seems poised to break through a short-term range held over the past month or so.
Daily Digest Market Movers: Gold price might continue to draw support from Middle East tensions and dovish Fed expectations
Technical Analysis: Gold price bulls could aim to retest the all-time peak, around the $2,483-2,484 area touched in July
From a technical perspective, the overnight breakout through the $2,448-2,450 horizontal resistance was seen as a fresh trigger for bullish traders. Moreover, oscillators on the daily chart have been gaining positive traction and further suggest that the path of least resistance for the Gold price is to the upside. Hence, a subsequent move back towards challenging the record high, around the $2,483-2,484 area, looks like a distinct possibility. This is followed by the $2,500 psychological mark, which if cleared decisively will set the stage for an extension of the upward trajectory.On the flip side, the $2,450-2,448 resistance breakpoint now seems to protect the immediate downside, below which the Gold price could slide back to the overnight swing low around the $2,424-2,423 region. The next relevant support is pegged near the $2,412-2,410 area ahead of the $2,400 round-figure mark. A convincing break below could expose the 50-day Simple Moving Average (SMA) support near the $2,376-2,375 region, which should act as a key pivotal point. Some follow-through selling could drag the Gold price to the late July low, around the $2,353-2,352 area. The latter coincides with the 100-day SMA and a sustained weakness below will shift the near-term bias in favor of bearish traders.More By This Author:Australian Dollar Maintains Strength Amid RBA’s Firm Stance Pound Sterling Price News and Forecast: GBP/USD steadies in calm start to UK/US InflationAUD/JPY Price Analysis: Bearish Bias Subdued, Indicators Hint At Consolidation Phase