Gold futures are trading in a narrow range just at a pivotal point of $4,122.54. A breakdown below it could extend bearish pressure, according to the analysis, while oil futures hold near their highs amid the US-Iran conflict.
Gold futures are teetering in a narrow range at $4,122.54 on Wednesday, and a break below that pivotal point could push the contract lower. Meanwhile, oil futures are holding near their highs.
A breakdown could send gold to test the next support at $4,076, where some reversal can be seen. If that level fails, the next support sits at $4,021.
Technically, on the daily chart, gold futures trade much below immediate resistance at the 9 EMA of $4,161. The analysis also points to the completion of a bearish formation called "Three Black Crows" during the last three sessions, which could push the futures below $4,122.54 in a short while.
The US-Iran conflict stays unresolved
On Wednesday, the 236th day of the conflict, US Secretary of State Marco Rubio told US media that a peace deal with Iran is extremely difficult. He said economic pressure will continue until Tehran stops targeting commercial shipping in the Strait of Hormuz.
Iranian Foreign Minister Abbas Araghchi, however, said the strait will remain closed until Washington accepts Tehran's conditions. He added that indirect talks continue through Pakistan and Qatar. US Defense Secretary Pete Hegseth, for his part, said Washington is prepared to take further military action.
Iran's seaborne crude exports fell to zero in the second week of September from a 14-day average of 230,000 barrels per day at the start of the month, according to Vortexa. They remained there as of October 5.
The source also warns that traders take any position in gold futures at their own risk, since the analysis rests solely on observations.
Source: Investing.com
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