FX.co ★ HiDe_N_SeEk | XAU/USD, GOLD

Gold Due to the continuous tensions in the US-Iran impasse and other unrest in the Middle East, gold continues to be the preferred option for a safe haven. Investors and central banks, whoever they are, have continued to turn to the yellow metal as an insurance policy against everything going wrong, including currency crises, because uncertainty appears to be getting thicker rather than thinner. In reality, because the globe is such a convoluted mess, some developing market central banks, Poland being one of them, are discreetly simply accumulating additional gold to change the composition of their reserves away from the dollar. Furthermore, governments now routinely purchase large quantities of mined gold. The fundamentals of gold are still fairly strong in spite of all of that. We're still concerned about what the Federal Reserve might do with interest rates, and geopolitics are still somewhat erratic. Additionally, despite the fact that oil prices have been steadily rising, this has actually had the unintended consequence of lowering expectations of a wave of rate cuts; in the meantime, gold is still essentially gold and a safety net. After holding steady at the crucial 0.382 Fibonacci level at $4,534, which is currently serving as a make-or-break point, gold (XAU/USD) is beginning to stabilize around $4,594. It's difficult to judge the overall picture, but one thing is certain: we are witnessing a corrective phase within a much larger bull run. The price is straining between a rising support line that is attempting to hold it up and a descending trend line that is serving as resistance. The 200 EMA, which has been serving as a cap, continues to loom above as a reminder of the transformation that is occurring, while the 50 EMA has begun to flatten at current levels. The RSI has recovered from oversold territory and is currently around 45, indicating that buyers are beginning to enter the market and sellers are losing ground. A slight rebound towards $4,800 and $4,988 could be triggered by holding above $4,532 for any amount of time.