What’s Next for Gold After the Breakout?

The ongoing tensions in the Middle East have driven gold prices above the resistance zone capped at 3390 USD, which is now being retested from above. The key question: will the rally continue?

From a “Risk-ON” perspective tied to geopolitical escalation, it is realistic to expect gold to resume its upward movement. The recent low around 3367 USD will be crucial for direction. As long as this level holds, there’s a strong case for another push toward 3455 USD, and potentially even the all-time highs around 3495 USD.

However, a clear break below 3367 USD would warrant a reassessment. In that scenario, short positions could come into play, with possible downside targets between 3320 and 3315 USD.

The next few days will be pivotal from a geopolitical standpoint. Will the U.S. become directly involved militarily? If so, what objectives will be pursued, and how far-reaching might the consequences be?

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