Gold declines further as geopolitical concerns ease

Technical Analysis

Author: Justin Low | gold

Gold falls by nearly 1% on the day

Gold D1 09-01
Gold is inching lower as price falls to a low of $1,540.33 to start the session. US-Iran tensions are continuing to fade and we are seeing gold retrace its gains from the risk event.

I already warned yesterday that gold was in a precarious spot and may soon be in for a reality check. It is a tricky spot for gold now as the upside move begins to unravel.

Notably, price is even looking to take out the 200-hour MA as seen below:

Gold H1 09-01
If sellers manage that, the near-term bias will then turn more bearish. That may open up a move back towards $1,520 and perhaps even $1,500 if markets continue to ride on the risk-on wave in the coming days/week.

Structurally, I am still advocating for gold dip-buying but at this stage I fear that there is still some momentum for it to fall a bit more towards the levels highlighted above.

In the long-run, there is still a lack of evident substitutes for gold - especially given the current economic climate and low rates globally, that is even excluding more potential escalation in geopolitical tensions that may still take place in the future.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose