Article by: ETO Markets

The only factor driving the increase in bullion prices was the rising geopolitical unrest in the Middle East, where Israel is considering taking revenge on Iran for the latter's massive attack over the weekend. Meanwhile, US yields recovered their grin and moved up the curve, continuing to trade near the top of the previous range.

The 4-hour chart indicates that XAU/USD is entering a more extensive phase of consolidation, which looks to be limited by the $… level for the time being. The 50-SMA is now holding the downside. The Relative Strength Index is pointing slightly southward at 55, while the longer moving averages continue to retain their positive slopes well below the current spot levels. The immediate support is around $…, where the 50-SMA hovers around.