Gold’s recent ascendance to a new throne in the financial markets. Continuing on its incredibly bullish structure, it’s managed to turn heads despite a hostile environment for investor sentiment. As geopolitical tensions escalate, particularly between Israel and Iran, the precious metal has experienced increased demand as a safe-haven asset. Right now, the future of gold’s bull run rests on a knife edge of key resistance and support levels, most notably the $3,440 level. The smart money is betting that if gold holds the line here, it will shoot to the moon. If it drops below $3,375, we could be heading into a retracement.
Gold’s recent rally can be attributed to two significant catalysts: a softer-than-expected U.S. Consumer Price Index (CPI) print and rising geopolitical concerns. This combination of factors has helped to ease the minds of gold investors, who often view gold as a safe haven investment in unpredictable times. The Israel-Iran shadow conflict has escalated sharply in the past few days. Consequently, many investors are turning toward gold — in historical context, gold is a safe haven counter-crisis investment.
Even with this bullish prospects, analyst warns that gold need to hold above that key $3,440 resistance area. If the crypto can hold a daily close above this level, we might witness explosive growth. Targets could go as high as $3,550 to $3,600, making them just shy of all-time highs. If prices fall under this floor of $3,375, particularly with the recent catalyst candle associated with the Israel/Iran situation, look out below! Unless it does so, the market might face increased chances of reversing back to $3,349 or worse.
After a brief correction, Gold’s price action has recently resumed its upward trend. It reclaimed inside the four-hour Fair Value Gap (FVG) extent, which is noted between $3,390 and $3,420. This space has become part of the big space to watch as traders continue to look for signs of new entry positions. It is incumbent upon institutions to capitalize on any downturns in this range. They’ll front-load on gold before the next Fed guidance.
The last major breakout level for gold was pegged at $3,350, a critical level that traders will be looking to test. If gold continues to breakout, some analysts are calling for an extension up to the $3,500 to $3,525 area. If the price drops decisively below $3,349, that would indicate a bearish turn of sentiment. This step would likely set off even sharper market losses.
In addition to the macroeconomic it’s the liquidity dynamics that are making gold’s price action so dynamic. Analysts were quick to point out that there is greater liquidity underneath the $3,200 mark, particularly if fears over geopolitical tensions fade away. This indicates that if geostrategic tensions do abate, there is a large amount of selling pressure which could drive prices down substantially.
Minor resistance levels are evident in the current market landscape, particularly between $3,450 and $3,470. These are critical levels that traders and investors alike need to pay close attention to. They might serve as obstacles to gold’s upward trajectory.