The price of gold has been consolidating in a range for a considerable period against the backdrop of the Middle East conflict. But the situation could change if the Fed resumes rate cuts and a neither?war?nor?peace state between the US and Iran persists for some time.
From a technical perspective, gold found support at $4,552.75. If this level holds, a local rise in the yellow metal can be expected.
Technical picture and trading idea:
- Price is below the middle line of the Bollinger Bands, and below the SMA 5 and SMA 14.
- RSI is moving flat in the oversold area.
- Stochastics are rising.
Gold may locally reverse upward toward $4,711.15. A buy entry could be at $4,616.10.
