Gold Stalls at Resistance Zone as Oil Prices Remain Vulnerable to Conflict Escalation

Gold prices edged higher on Friday, but struggled to attract sustained buying after reaching a minor retracement zone at $4,373.05 to $4,405.59.

The main trend remains down according to the daily swing chart, but momentum has turned higher following a change in the minor trend and a move above the 50-day moving average at $4,288.76.

For gold to turn up on the daily swing chart, it needs to break through the swing top at $4,510.93. On the other hand, if it falls below $4,235.17, the downtrend is likely to resume.

The conflict between Iran, Saudi Arabia, and the Houthis remains active, with visible vessel traffic through the Strait of Hormuz still far below normal. A weekend escalation in tensions could send crude prices back up, potentially threatening gold's recent gains.