GOLD PRICE TALKING POINTS
The price of gold holds above the monthly low ($1518) despite easing tensions between the US and Iran, and the precious metal may test for support over the coming days as the Relative Strength Index (RSI) sits in overbought territory.

GOLD TESTS FOR SUPPORT AS RSI SITS IN OVERBOUGHT TERRITORY
The price of gold pulls back from a six-year high as US President Donald Trump addresses the nation, with the administration planning to respond to the Iran attacks with additional sanctions rather than military action.

Efforts to deescalate the hostile situation may undermine the recent rise in the price of bullion, but the threat of war along with the ongoing shift in US trade policy may keep gold prices afloat as the Office of the United States Trade Representative (USTR) intends to combat France’s Digital Services Tax by implementing “additional duties of up to 100 percent on certain products of France.”

It seems as though the Trump administration will continue to rely on tariffs and sanctions to carry out its agenda, and the Federal Reserve as well as the European Central Bank (ECB) may come under pressure to provide monetary support amid the weakening outlook for global growth. In turn, geopolitical risks paired with speculation for lower interest may keep gold prices afloat as market participants look for an alternative to fiat-currencies.

With that said, the broader outlook for the price of gold remains constructive, with the reaction to the former-resistance zone around $1447 (38.2% expansion) to $1457 (100% expansion) helping to rule out the threat of a Head-and-Shoulders formation as the region acts as support.