Key points:

• Gold pops $70
• Iran war in the mix
• Traders wary of conflict

But can it hold the line?

💸 Gold Finds Support

• Draw a line and buy it fine. That’s what gold bulls did earlier this week when the price of gold (XAU/USD) slipped to a support zone around $4,965 to $4,970.
• A few brief revisits gave the late-to-the-party traders an opportunity to move in before the precious metal took off, gaining as much as $70 in a matter of hours.

💡 Technically Speaking

• Gold found support at the inflection point of an ascending channel best seen on the four-hour time frame. The starting point is a steep decline kicking off February 4 and lasting a total of 12 days for a total of an 8.1% drop.
• Then a move up lifted the precious metal to a new turning point, followed by a reversal to the low end of the channel. Run the upward-looking parallel lines between the upper and lower boundary and you’ve got a perfect rebound at $4,966 per ounce this week.

⚠️ Fundamentals Without the Fun

• Fundamentally, hopes that the Iran war will fade sooner rather than later kept investors’ appetite alive. Oil prices slipped on Monday and stocks gained traction after three weeks of losses.
• That said, if the conflict shows signs of escalation, expect gold prices to get pretty volatile again. A slide under $5,000 could indicate renewed pressure and put the parallel-channel rise to the test.

Source: Tradingview