Gold prices retreated from the $5,400 range, with bulls awaiting further developments in the Middle East.
2026-03-02 13:12:14
Gold retreated from the $5,400 area, its highest level since late January, which it touched during Monday's Asian trading session, but managed to hold above the psychological level of $5,300. Gold is currently trading above the midpoint of $5,300, hovering around the $5,350 mark, up more than 1.0% on the day.
Geopolitical tensions in the Middle East escalated sharply over the weekend, unsettling global markets. In fact, the United States and Israel launched a coordinated military strike against Iran. Furthermore, the Iranian Islamic Revolutionary Guard Corps Navy announced the closure of the crucial Strait of Hormuz, increasing the risk of a protracted war in the Middle East. This situation significantly boosted gold, a traditional safe-haven asset, at the start of the new week.
As the initial volatility subsided, gold bulls opted to take profits on some positions, awaiting further news to determine their new bets. Meanwhile, the dollar retreated slightly from its highest level since January 23, and market expectations of further interest rate cuts by the Federal Reserve could continue to support non-yielding gold. Therefore, a degree of caution is warranted before making aggressive bearish bets on gold, and before preparing for any meaningful pullback.
This week, traders will face a series of important US macroeconomic data releases, starting with the ISM Manufacturing PMI. This will be followed by Wednesday's ADP employment report and ISM Services PMI, and Friday's non-farm payrolls report. However, market focus will remain on geopolitical developments, which will significantly impact global risk sentiment and largely drive demand for gold, a safe-haven asset.
Following last week's break above the $5,200 resistance level, Monday's strong rally is favorable for gold bulls. Furthermore, the MACD line is above its signal line and in positive territory, with the histogram expanding, supporting increased bullish momentum after the recent rally.
Meanwhile, the RSI is hovering around 68.88, slightly below overbought territory, indicating strong but not extreme upward pressure. Initial support appears around $5260, the starting point of the latest consolidation zone, followed by deeper support at $5210, protecting the previous consolidation range. A break below $5210 would make $5180 the next downside target.
On the upside, the current resistance level is around the recent high of approximately $5,390. A sustained break above $5,390 would pave the way for a continuation of the upward trend; however, failure to break through this barrier could leave gold prices vulnerable to pullback pressure, potentially returning to the vicinity of the mentioned support level.
Spot gold daily chart source: EasyForex
At 13:11 Beijing time on March 2, spot gold was trading at $5348.89 per ounce.
Geopolitical tensions in the Middle East escalated sharply over the weekend, unsettling global markets. In fact, the United States and Israel launched a coordinated military strike against Iran. Furthermore, the Iranian Islamic Revolutionary Guard Corps Navy announced the closure of the crucial Strait of Hormuz, increasing the risk of a protracted war in the Middle East. This situation significantly boosted gold, a traditional safe-haven asset, at the start of the new week.
As the initial volatility subsided, gold bulls opted to take profits on some positions, awaiting further news to determine their new bets. Meanwhile, the dollar retreated slightly from its highest level since January 23, and market expectations of further interest rate cuts by the Federal Reserve could continue to support non-yielding gold. Therefore, a degree of caution is warranted before making aggressive bearish bets on gold, and before preparing for any meaningful pullback.
This week, traders will face a series of important US macroeconomic data releases, starting with the ISM Manufacturing PMI. This will be followed by Wednesday's ADP employment report and ISM Services PMI, and Friday's non-farm payrolls report. However, market focus will remain on geopolitical developments, which will significantly impact global risk sentiment and largely drive demand for gold, a safe-haven asset.
Following last week's break above the $5,200 resistance level, Monday's strong rally is favorable for gold bulls. Furthermore, the MACD line is above its signal line and in positive territory, with the histogram expanding, supporting increased bullish momentum after the recent rally.
Meanwhile, the RSI is hovering around 68.88, slightly below overbought territory, indicating strong but not extreme upward pressure. Initial support appears around $5260, the starting point of the latest consolidation zone, followed by deeper support at $5210, protecting the previous consolidation range. A break below $5210 would make $5180 the next downside target.
On the upside, the current resistance level is around the recent high of approximately $5,390. A sustained break above $5,390 would pave the way for a continuation of the upward trend; however, failure to break through this barrier could leave gold prices vulnerable to pullback pressure, potentially returning to the vicinity of the mentioned support level.
Spot gold daily chart source: EasyForex
At 13:11 Beijing time on March 2, spot gold was trading at $5348.89 per ounce.
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- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
