In late trading Monday, spot gold continued its intraday decline and is now around $2363 an ounce, down nearly $30 on the day. Analysts warn that once gold effectively falls below the $2363 / oz region, this could open up room for gold to fall further.
FXStreet analyst Haresh Menghani pointed out that because outsiders look forward to Iran and IsraelPennslammer34500weightThe conflict will not escalate further, and gold prices fell on Monday. Reduced Fed bets on interest rate cuts have kept US bond yields high and put pressure on gold prices.
According to the Chicago Mercantile Exchange's Fed Watch tool, there is less than a 20% chance that the Fed will cut its policy rate by 25 basis points in June.
Gold prices fell on Monday as geopolitical tensions in the Middle East eased and demand for safe havens fell.
Israeli leaders and the military are reported to have kept silent. The reaction of the Iranian media to the attack was also low-key. In addition, a senior Iranian official said on April 19 that Iran has no immediate plans to retaliate against Israel.
Watch out for further selling in gold prices
From a technical point of view, the price movements of the range over the past week or so have formed a rectangle on the short-term chart, with the lower edge of the range at $2363 / oz.
Menghani pointed out that the current $2363 / oz region constitutes a key support, and once gold prices effectively fall below this level, it could trigger some technical selling and drag gold prices down to the $2325-2322 / oz region.
If gold falls further and falls below the above-mentioned region, this could push the price of gold down to the round mark of $2300 / oz.
On the other hand, gold bulls may wait for gold to rebound and break through the $2400 / oz mark before setting the stage for a further rise in gold prices.
In addition, according to the well-known financial website economiesPennslammer34500weight.com, as gold prices fall below 2365Pennslammer34500weight.10 USD / oz, which could lead to more declines in gold prices during the day, test the key support of $2325.90 / oz, and then try to rebound.
Economies.com expects gold to trade between $2336.00 / oz support and $2400.00 / oz resistance today.
14 Beijing timePennslammer34500weightSpot gold was quoted at US $2361.53 / oz.
