But the downside in gold and silver might be capped if the geopolitical tensions escalate further. The long term demand outlook also looks strong due to China’s larger gold reserves and Hong Kong’s new gold trading measures. This indicates that the gold price may face short-term pressure but the long-term outlook remains robust. Therefore, any correction in gold and silver prices may offer a buying opportunity for long term investors.
Gold Price Forecast: Oil Spike and Strong Dollar Pressure Bullion
XAUUSD Daily: $3,950 Support Faces $4,350 Breakout Test
The daily chart for spot gold shows that the price has rebounded from the strong support of $3,950. But the rebound so far has been weak and faces resistance at the $4,200 level.
As per our discussion in the previous analysis, the immediate resistance remains the black dotted trend line at $4,300. A break above this level will push the gold price towards the $4,350 area. Only a break above $4,350 will confirm further upside in the gold market towards $4,500. On the other hand, $3,950 is protecting the downside, and consolidation around these levels indicates price uncertainty.