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Gold slips as Middle East tensions boost rate-hike expectations
Gold is testing key support around $4,076 after reopening Monday about $20 lower, with $4,000 and $3,950 also flagged as critical levels.
Gold edged lower in early trading after opening about $20 down, as an escalation in the Middle East raised inflationary risk and increased expectations that the Federal Reserve may keep rates higher or even consider rate hikes, which supported the US dollar, Action Forex reports.
The market focus also turns to upcoming US data, including the June inflation report and Fed Chair Warsh’s semiannual testimony on the economy, inflation, and monetary policy, which the outlet says could add fresh detail to the outlook.
On the charts, Action Forex points to a mainly bearish daily setup after several death-cross formations in June, with momentum still negative and the RSI below 50.
The outlet highlights downside levels to watch, including a weekly close below the $4,076 Fibo support area and key psychological and recent spike support at $4,000 and $3,950, while noting nearer resistance at $4,118 and a pivotal barrier at $4,203.
Latest closeGold $4,128.90 ▼0.0%