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      Uptrend Channel Broken; Bulls Need Further Downside for Support

      Eva Chen

      Summary:

      Amid a stronger U.S. dollar, gold retreated under pressure during the Asian session. However, as geopolitical risks in the Middle East continue to escalate, safe-haven demand still underpins gold prices, leaving significant room for long-term upside.

      Buy

      XAUUSD

      EXP
      PENDING

      4950.00

      Entry Price

      5700.00

      TP

      4825.00

      SL

      5143.46 +4.94 +0.10%

      --

      Point

      PENDING

      4825.00

      SL

      CLOSING

      4950.00

      Entry Price

      5700.00

      TP

      Fundamentals

      Affected by a stronger U.S. dollar, gold prices pulled back in early Asian trading, once approaching the $5,000 mark. The appreciation of the U.S. dollar has reduced the appeal of U.S. dollar-denominated assets to non-U.S. dollar investors, exerting short-term pressure on gold prices.
      Market risk aversion surged rapidly after the U.S. and Israel launched strikes against Iran. For the time being, the U.S. dollar has outperformed as a safe-haven asset, with some capital flowing preferentially into the dollar rather than gold. In addition, rising reflation risks may push the Fed to maintain a cautious policy stance, limiting gold’s short-term performance and increasing its volatility.
      Nevertheless, geopolitical tensions in the Middle East continue to simmer, triggering fresh safe-haven buying across macro assets including gold and the U.S. dollar. From an asset allocation perspective, gold’s weighting in global portfolios remains low, with room for further increases in both tactical and strategic allocations.
      Should the Iran conflict escalate further, gold prices still have the potential to retest the $5,500–$5,600 range in March.
      Uptrend Channel Broken; Bulls Need Further Downside for Support_1

      Technical Analysis

      Gold prices opened with sharp volatility on Monday and broke below the lower bound of the uptrend channel. Prices are currently hovering above the key support level near $5,046. A break above $5,280 could pave the way for further gains toward $5,448, while a drop below $5,046 may trigger a deeper decline toward the $4,960–$4,842 zone.

      Trade Recommendations

      Trade Direction: Buy
      Entry Price: 4950
      Target Price: 5700
      Stop Loss: 4825
      Valid Until: April 8, 2026, 23:55:00
      Support: 5053/5014/4996
      Resistance: 5144/5191/5209
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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