After breaking through the $1,900 support level in the latter half of the year, gold accelerated its descent, reaching an ideal correction level at approximately $1,810, as per the Fibonacci 0.618 retracement.
In tandem with the rise in risk perception leading to increased demand for commodities, the gold market witnessed a gap-up opening. The price per ounce of gold commenced the week with a 1% gain, hovering around the $1,850 mark. Should this demand persist, the $1,870 range will emerge as the initial resistance zone, followed by the critical juncture at the $1,900 mark, which will determine the trend for gold.
The gold market has faced pressure in recent months due to heightened demand for the dollar in a climate of global uncertainty. However, the resurgence of geopolitical risks could potentially reverse this trend. Such a development might rekindle demand for gold in the final quarter, diminishing the allure of the currently overbought dollar.
Consequently, it's conceivable that the pricing dynamics of this week may be driven more by geopolitical risk than economic data, which could exert a more pronounced influence in the forthcoming periods.
If gold decides to revert though, it might close the gap and return to 1829.
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