An economic source closely monitoring the markets said, in a statement to “Lebanon 24”, that the strike carried out by the United States and Israel on Iran led to a rapid re-evaluation of the geopolitical risks in the metals markets. The source suggested that gold would witness extreme volatility at the opening on Monday, and perhaps a price “gap” if the escalatory news continued over the weekend.
According to market data, gold closed near $5,277.9 per ounce with a notable daily range, reflecting the return of safe haven appetites in conjunction with fears of a widening regional response.
The source linked the initial course of Monday’s opening to two interconnected factors: the first was the size of the Iranian response and indications of expanding the scope of targeting, and the second was the speed at which concern moved to the energy and waterways files. He added that any development that increases the possibilities of “regional expansion” will immediately support gold, even if the dollar or yields try to limit this rise.
Technically, the source identified two ranges that he called “explosion or collapse keys” with the opening. The first range, to the upside, is located at $5300 and above, as stability above this level reinforces the scenario of an acceleration of buying towards 5350 and then 5450, reaching a retest of higher areas within the general range.
As for the second range, downwards, it is represented by breaking the $5200 level, because losing this barrier, in the source’s opinion, means a decline in the risk premium and the start of a deeper correction towards 5150 and then 5100, with the range between 4985 and 5050 being considered a sensitive support area if the profit-taking wave expands.
The source concluded by saying that the markets will treat Monday’s opening as a test of news “headlines” rather than a test of data, noting that the first hours may be decided based on any indicators of calm or, on the contrary, any signs of expanding the scope of responses or extending pressure to the region.
