On Wednesday morning, the gold prices have grown by more than 1% amid the intensification of the US-Iran conflict.
A few hours after the funeral of General Kassem Suleimani, Iran launched a missile attack on two US military bases in Iraq. Iranian Foreign Minister Javad Zarif called these attacks self-defense, in the framework of Article 51 of the UN Charter. Donald Trump tweeted that the United States is currently assessing damage and will make a statement Wednesday morning. Later, the Iranian authorities threatened with new attacks on the facilities of the United States and its allies (Israel and the UAE) in the event of retaliatory actions and further escalation of the conflict.
Due to investors trying to avoid risks, the gold price jumped this morning to $ 1,611. At the time of writing, trading takes place in the area of $1595. Gold retains the potential for further growth in the event of an escalation of the conflict in the Middle East. Now investors are waiting for a statement from Donald Trump.
A strong bull trend continues to develop on the chart. After correction from the level of 1611.00, the price found support at the level of 1585.00 and resumed the upward movement. In the near future, we can expect further growth in quotes and retest levels of 1600.00 and 1611.00.
Resistance Levels: 1600.00, 1611.00, 1615.00;
Support Levels: 1585.00, 1568.00, 1557.00.
The main scenario - an increase towards 1600.00.
An alternative scenario - a breakdown of support at 1585.00 and a decline towards 1568.00.
The fundamental outlook is positive. Bullish signals prevail on the chart. Within a daily framework, we consider longs near the level of 1585.00.