Article by: ETO Markets

The market's prevailing attitude of risk aversion keeps the US Dollar supported close to multi-week highs. The US Dollar's role as a safe haven is supported by the ongoing geopolitical tensions in the Red Sea, which are expected to keep investors on edge and make gold prices sensitive.

As can be seen on the daily chart, the price of gold displayed a symmetrical triangle. The 50-DMA support around $… is being challenged by the gold price. If the latter is not consistently defended, there may be another sell-off toward the $… level. However, the convergence of the 20-DMA and the triangle resistance is $…; this represents the next significant upside hurdle. The latter will give rise to new purchasing opportunities, allowing the price of gold to retest the psychological $… level.