Market Overview

Gold prices rose more than 1% during Monday’s session, recovering from the lowest level in more than a week recorded in the previous session. The rebound came as Brent crude prices declined after Iran said that peace talks between the United States and Iran had made progress, helping ease concerns over inflation and the prospect of interest rates remaining high for an extended period.

As of 01:12 GMT, spot gold was up 1.2% at USD 4,209.03 per ounce.

Technical Analysis: Is a Bullish Structure Taking Shape?

Current market movements generally remain in line with the previously mentioned scenario, as gold has entered a corrective phase as expected.

After declining from the T1 zone toward L1, gold prices have remained above the key condition level of USD 4,023 per ounce. This indicates that the bullish scenario has not yet been invalidated and remains in play.

However, this is only the necessary condition. To fully confirm the bullish structure, gold needs to break above and close firmly above the USD 4,383 per ounce level. This would provide the sufficient condition for a new upward trend to be established.

On the other hand, investors should also note that gold closed last week below the EMA50 on the weekly timeframe (W1). This is a signal that the medium-term backdrop is still leaning more toward sellers, while also increasing the risk for long positions at the current stage.

Conclusion

The rebound at the beginning of the week is helping gold significantly improve its short-term structure and maintain bullish expectations. However, the uptrend still needs further confirmation, especially a clear breakout above the USD 4,383 per ounce resistance zone.

Meanwhile, the fact that gold remains below the EMA50 on the weekly timeframe suggests that medium-term bearish pressure has not fully ended. Investors should maintain caution and wait for additional confirmation signals before making investment decisions.

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