On Friday, July 10th, the price of gold stabilized as investors evaluated the impact of renewed conflict in the Middle East and the prospects for interest rate hikes to combat inflation. The metal traded around $4120 per ounce, following a session that ended a three-day losing streak.
According to a U.S. official, negotiations between the United States and Iran are continuing, despite reciprocal airstrikes this week and the U.S. reimposing oil sanctions on Iran. This escalation of conflict risks the interim peace agreement signed last month and heightens market uncertainty regarding the safe passage of energy and other commodities through the Strait of Hormuz.
Technical Analysis of Gold
From a daily chart perspective, the moving average structure indicates that the gold price is attempting to recover from previous downward pressure, but a trend reversal confirmation would require breaking through key resistance levels. The resistance zone to watch is between $4150 and $4180. The MACD indicator shows that bearish momentum is gradually weakening, entering a phase of consolidation and recovery.
On the 4-hour chart, the price maintains a pattern of choppy upward movement following a rebound, with short-term moving averages gradually turning higher. However, the current price is approaching a previous pressure area. A failure to break through the resistance near $4150 could lead to a technical pullback. The RSI indicator is in a neutral-to-strong zone, suggesting improved market sentiment.
Overall, for tonight's trading session, the recommended approach is to treat gold within a wide-range consolidation framework.
Gold Trading Strategy
Short Position Strategy: Consider selling on a rise to the $4134-$4136 range, with a stop-loss at $4157, targeting around $4096.
Long Position Strategy: Consider buying on a dip to the $4096-$4093 range, with a stop-loss at $4075, targeting around $4130.
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