Gold (XAU/USD) daily chart
The precious metal looks to snap four straight days of gains to start the new week, as it holds slightly lower on the day. That being said, it is off its earlier low of $1,964.45 at least, although there is a broader wave of easing safety flows today. Oil is also down 1% while we are seeing equity futures keeping just a touch higher alongside bond yields ahead of European trading.
Going back to gold, the retreat late last week and the drop today coincides with a defense at key resistance from the June and July highs at around $1,983-87 for now. That remains the key upside level to watch before getting to the $2,000 mark for buyers.
The Israel-Hamas conflict is still a major development to watch but if the situation does show signs of easing tensions, there could be a stronger reversal in the cards for gold if the technicals are anything to go by. But the first key hurdle on any retracement lower will be back towards the 100 (red line) and 200-day (blue line) moving averages.
But we’ll get to that when the turn does happen. For now, it’s just a sign of risk-off flows from Friday unwinding and nothing more than that to start the new week.