GOLD price jumps and violates key barriers on fresh US-Iran peace hopes

Gold price rose over 3% and hit the highest in nearly six weeks on Wednesday, lifted by fresh wave of optimism over a peace talks between the US and Iran, which eased inflation concerns and deflated the US dollar.

This was so far the strongest market reaction in more than one month, as fresh rally violated range top ($4203), reinforced by the base of falling and thickening daily Ichimoku cloud, generating significant bullish signals.

However, signals require confirmation on sustained break above these barriers that would open way for stronger recovery and expose next key barrier at $4304 (Fibo 38.2% of $4889/$3942) violation of which to generate reversal signal.

Strengthening positive momentum and formation of daily Tenkan/Kijun-sen bull cross, show positive developments on daily technical studies, which contributes to improving near-term outlook.

Geopolitical factor is likely to remain key price driver, with traders being cautious and focus on comments from President Trump (so far known for quick changes of direction of his views that kept market action highly volatile) that would continue to strongly impact traders’ sentiment.

Fresh acceleration higher is likely to face increased headwinds at $4200 zone, due to significance of these barriers, as some investors may decide to collect profits, however subsequent dips should hold above $4166 (broken Fibo 23.6% of $4889/$3942) to revived bulls in play.

Res: 4261; 4304; 4387; 4399
Sup: 4166; 4137; 4100; 4066