Gold continues to pressure strong $5000 support

Gold price remains at the back foot on Tuesday and continues to pressure key $5000 support zone (recent range floor / psychological / top of thin ascending daily cloud) after Monday’s attack failed to register sustained break lower.

Broader bulls remain on hold with the price holding around the mid-point of $5598/$4402 corrective pullback, as global uncertainty keeps the metal underpinned, but dollar became more popular due to growing threats of fresh inflation rise over escalating Middle East crisis and oil shock on disruption of supply through Hormuz strait.

The yellow metal is likely to hold in prolonged range trading but expected to keep bullish bias, with main economic event this week being FOMC policy decision.

The Fed is widely expected to stay on hold at Wednesday’s meeting, but policymakers will continue to closely monitor developments.

I don’t expect significant impact from the Fed meeting (if decision remains within expectations) and remain focused on $5000 support.

Near term structure would weaken on firm break here and bring in focus targets at $4910/00 (50% retracement of $4402/$5419 recovery leg / 55DMA / round-figure) and $4841 (Feb 17 higher low) in extension. Bearishly aligned daily studies (negative momentum / Tenkan / Kijun-sen bear-cross) support scenario.

Conversely, ability to hold above $5000 would keep slight bullish bias, though bounce above minimum $5100 would be needed to neutralize immediate downside threats.

Res: 5038; 5100; 5124; 5179
Sup: 4967; 4940; 4900; 4841