#GoldTechnical Analysis#24K99 News: On Tuesday (October 8), in early European trading, spot gold maintained an intraday decline and is currently trading near $2636 per ounce. FXStreet senior analyst Dhwani Mehta's latest article on Tuesday analyzes the technical trend of gold prices.
Mehta pointed out that the price of gold maintained a corrective downward trend on Tuesday morning, with the current focus still on the Middle East tensions and speeches by Federal Reserve policymakers to seek new trading cues.
Looking ahead, speeches by Atlanta Fed President Raphael Bostic and Fed Vice Chairman Philip Jefferson will be closely watched as the United States has no top-tier economic data releases later on Tuesday.
Mehta also mentioned that traders will continue to monitor the escalating conflict between Israel and Iran, especially after Iran-backed militant group Hezbollah launched dozens of rockets at Haifa, Israel's third-largest city. Meanwhile, the Israeli military described its recent ground operation in Lebanon as 'local, limited, and targeted,' but its scale has steadily increased since last week.
Iran issues latest warning that Israeli Defense Minister will soon visit the United States.
Reuters reported on Tuesday that Iran warned Israel on Tuesday not to launch any attacks against Iran. A week ago, Tehran fired a series of missiles at Israel, causing tension and unease in the Middle East region.
(Screenshot source: Reuters)
Iranian Foreign Minister Abbas Araqchi said that any attack on Iran's infrastructure will be met with retaliation, warning Israel not to attack Iran.
The Israeli military said on Tuesday that it has begun ground operations in southwestern Lebanon, expanding its invasion into a new area.
A year ago, the Palestinian armed group Hamas launched attacks on southern Israel, sparking regional tension. This tension escalated into a series of land and air operations by Israel over Lebanon, as well as direct attacks by Iran on Israeli military facilities.
Bloomberg reported on Tuesday that Israeli Defense Minister Yoav Gallant will soon travel to Washington, as Israel continues to weigh how to respond to Iran's missile attacks, while the United States urges restraint.
(Screenshot Source: Bloomberg)
The Pentagon stated that Gallant will discuss "ongoing developments in the Middle East security situation" with USA Defense Secretary Austin (Lloyd Austin) on Wednesday.
USA President Joe Biden urged Israel not to attack Iran's nuclear facilities or oil infrastructure, fearing that this may trigger a broader war, burden Washington, raise energy prices, and impact the global economy.
According to Iran's Tasnim News Agency and other foreign media reports on Monday local time, military sources confirmed to the media that Iranian armed forces have prepared at least 10 plans to counter potential Israeli attacks, stating that these plans can be activated when necessary.
Military sources stated that the above plans are subject to updates, and the preparation of the plans indicates Iran's seriousness in dealing with hostile actions.
Sources stated: "Iran's response may not necessarily align with Israel's actions, it could be more severe, targeting different objectives to enhance the effectiveness of the response."
How to trade gold?
FXStreet senior analyst Dhwani Mehta pointed out that after a gradual decline over the past four days, gold buyers are expected to challenge key static levels.Resistance2630 US dollars per ounce.
However, on the 14th.Relative Strength Index(RSIStill far above the midline, currently close to 62, implying that if the price of gold falls, it may be bought.
Mehta stated that the gold price needs a strong resistance level near the daily closing price above 2670 US dollars per ounce in order to offset recent downward pressure.
The next resistance level for the gold price is at the historical high of 2686 US dollars per ounce. If gold continues to rise, buyers will target the key level of 2700 US dollars per ounce.
(Spot gold daily chart source: FXStreet)
On the other hand, FXStreet Senior Analyst Dhwani Mehta added that gold sellers must break through the low of $2630/oz at the end of the day in order to trigger further adjustment and drop to $2600/oz. Before this level, on the 21st.Simple Moving Average(SMA) $2614/oz may provide temporary support for buyers.
At 15:51 Beijing time, spot gold was reported at $2635.87/oz.