#Middle East Situation##Gold Technical Analysis#24K99 News On Tuesday, August 27th, in the Asian market, spot gold suddenly encountered selling pressure in the short term. Currently, the price is near $2506 per ounce, with a sharp drop of more than $11 within the day. FXStreet's chief analyst Valeria Bednarik wrote an article analyzing the technical outlook for gold.
The latest statement from senior U.S. officials indicates that the short-term risk of a broader war outbreak in the Middle East has eased after the Israel-Hezbollah conflict. Analysts pointed out that this statement has reduced the market's risk aversion sentiment, thereby impacting the gold price.
Spot gold closed up nearly 0.3% on Monday, at $2517.94 per ounce. The price reached a high of $2526.90 per ounce in Monday's session, approaching the historical high of $2531.60 per ounce set last week.
After the start of Tuesday's trading, the gold price saw a pullback, just hitting a low of $2505.78 per ounce, setting a new intraday low.
(Source: 24K99) 15-minute chart for spot gold.
Bednarik pointed out that gold may experience a downward correction in the near future. However, there is still a possibility for the gold price to revisit historical highs in the future.
Senior U.S. officials: Short-term risk of a broader war outbreak in the Middle East has eased
According to the latest exclusive report from Reuters on Tuesday, senior U.S. officials stated on Monday that the short-term risk of a broader war outbreak in the Middle East has eased after the conflict between Israel and Hezbollah in Lebanon.
(Screenshot source: Reuters)
General Brown, Chairman of the Joint Chiefs of Staff of the United States, and Air Force General Brown (C.Q.Brown) told Reuters after his three-day trip to the Middle East that, hours before he arrived in Israel, Hezbollah fired hundreds of rockets and drones at Israel, and the Israeli military also struck Lebanon to prevent larger-scale attacks.
Brown claimed that this is one of the largest conflicts in the 10-month border war, but when the conflict ended, Israel's losses were limited, and neither side immediately threatened to retaliate further.
When asked if the direct risk of regional war has decreased, Brown said, "To some extent, yes."
Brown added, "You know two things will happen. One has already happened. Now we have to see the outcome of the second war. How Iran responds will determine how Israel responds, which will determine if a broader conflict will occur."
Short-term technical outlook for gold
According to Bednarik, the daily chart of gold shows that some technical indicators have lost upward momentum, but it is still above the midline, indicating no signs of exhaustion in the bullish trend. At the same time, the gold price is above all its moving averages, with the 20-day simple moving average (SMA) steadily rising to around $2458.75 per ounce.
Bednarik added that, based on the recent view, the technical indicators on the 4-hour chart suggest that the gold price may undergo a corrective decline in the coming trading sessions. The technical indicators have retraced from their recent lows and are steadily declining, but still at positive levels. At the same time, the 20-period SMA still has no direction, while the 100-period SMA and 200-period SMA maintain a bullish slope below the shorter-term averages, limiting the possibility of a larger decline in the gold price.
(Spot gold 4-hour chart source: FXStreet)
Bednarik gave the latest important support and resistance levels for the gold price:
Support level: $2496.40 per ounce; $2485.10 per ounce.
Resistance level: $2523.50 per ounce; $2531.60 per ounce; $2542.00 per ounce.
At 10:32 Beijing time, spot gold is trading at $2506.49 per ounce.