In London on April 19th, the gold market went through a lot of ups and downs because of news about an attack in Iran. But after that, the market didn’t really move much. It was like it just stayed still and didn’t change much at all.
Understanding Gold Markets Through Technical Analysis
Gold prices surged when news spread that Israel had attacked Iran, pushing above the $2,400 mark in the spot market overnight. However, this excitement was short-lived as reports emerged suggesting that Israel’s target wasn’t as significant as initially thought, and damages were limited. This back-and-forth reflects ongoing tensions, essentially a tit-for-tat exchange using missiles.
Now, it seems the markets are realizing this isn’t a major escalation, at least for now. Gold quickly gave back its gains as cooler heads prevailed. The rapid movement in gold prices overnight was remarkable, but since then, the market has calmed down and returned to its previous range.
Given this, it’s likely we’ll see sideways movement in the near term. Gold surged rapidly and needs time to settle, possibly even pulling back towards the $2,200 level. While chasing gold at this point may be risky, there were quick opportunities for profit overnight.
Looking ahead to the weekend, traders face uncertainty. Holding onto gold may seem prudent due to potential weekend troubles, but good news could lead to a significant drop in gold prices. Therefore, the market is viewed as bullish in the long term but neutral in the short term, and that’s how I plan to approach trading it.
