The recent helicopter crash that claimed the life of Iranian President Ebrahim Raisi has had a significant impact on the gold market. The crash, which also took the lives of several other high-ranking officials, including Foreign Minister Hossein Amir-Abdollahian, occurred in a mountainous area near the border with Azerbaijan. As news of the tragic incident spread, the price of gold experienced a sharp increase. Yahoo Finance reported that the rise in gold prices was driven by uncertainty surrounding the situation in Iran. At its peak, the price of gold reached an all-time high of $2450 per ounce.
Technical Analysis of Gold Price
Prior to the helicopter crash, analysts had identified the $2400 level as a significant resistance point for gold. After briefly surpassing this level, the price of gold corrected to around $2380. Following the tragic news, gold prices made a second attempt to break through the $2400 level. A technical analysis of the gold price reveals several key points to consider:
– The long-term ascending blue channel remains relevant, with the price nearing its upper boundary.
– The price is close to the median of the ascending black channel, indicating potential resistance.
– There is a bearish divergence forming on the RSI indicator.
– Following the historic peak, the price of gold began to decline, partly influenced by an official statement from Israel denying involvement in the crash.
Outlook for Gold Prices
The recent events surrounding the helicopter crash and subsequent decline in geopolitical tensions suggest that a new correction in the gold market may be imminent. The lack of a significant increase in oil prices, as seen in XBR/USD trading, indicates that fears of Middle East escalation may not be as strong as initially thought. As a result, a correction in the XAU/USD chart could lead to a retesting of the lower boundary of the short-term channel in black. If this scenario unfolds, the $2400 level may act as a key level of support for gold prices moving forward.
The tragic death of Iranian President Ebrahim Raisi has had a profound impact on the gold market, leading to a surge in prices driven by uncertainty and geopolitical tensions. As investors navigate these uncertain times, it is essential to closely monitor technical indicators and market dynamics to make informed trading decisions.
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