Gold Slightly Down Despite Rising to US$3,400

Gold prices dropped back to US$3,364 after briefly rising to US$3,400. The precious metal has yet to show its strength even though analysts are optimistic that gold could move in the price range of US$3,500 to US$3,700 due to the escalating tensions in the Middle East.

Current gold prices have two important support zones. The first support is at the level of US$3,350, which is supported by the 20-day moving average (20-day SMA), and the second support is at US$3,320, derived from the 50-day moving average (50-day SMA).

If geopolitical tensions increase, the short-term target for gold could rise to the range of US$3,430 to US$3,450, but the highest resistance level of all time is at US$3,500.

Conversely, if there is de-escalation or a calming of tensions, gold prices could drop to US$3,300 or even lower. This is because global investors may shift their funds to riskier assets such as stocks or crypto.