Oil rally persists as Saudi-Houthi conflict and US-Iran strike risk underpin prices
Crude oil stays supported as Saudi-Houthi fighting continues and the market weighs possible US strikes on Iran, including claims of renewed Hormuz attacks.
Gold extended its decline after losing the 4,070 support, hit by liquidation despite falling real yields; US Flash PMIs are today's focus.
Gold's slide extended into yesterday's session, after the 4,070 support level gave way as broad risk-off mood stiffened financial conditions. The metal appears to have been pushed lower mainly by forced selling to cover equity-market losses, a pattern similar to 2025.
To grasp the mechanics, picture a fund holding stocks, gold and government bonds. A sudden crash in some equities creates losses on leveraged positions. The fund might need to free up cash to cover margin calls, reduce leverage or meet investor redemptions. Rather than selling only the assets that caused the losses, it may sell whatever can be liquidated quickly. Gold is especially suited to this because it is highly liquid and easy to sell fast.
The main fundamental drivers, such as real yields, have actually been pointing toward higher gold prices. Real yields, in fact, have fallen sharply as inflation expectations stay roughly unchanged even as oil prices have risen, while nominal Treasury yields declined on growth concerns. That may give buyers a chance to fade the weakness and get in at more attractive prices.
Attention today is on the US Flash PMIs. A downside surprise would likely intensify growth concerns and produce another dovish repricing. In that scenario, gold should find support as real yields fall further. Stronger-than-expected numbers, on the other hand, could ease near-term growth fears and put pressure back on gold.
GOLD TECHNICAL OUTLOOK β DAILY TIMEFRAME
The daily chart shows gold, the CFD contract, extending yesterday's slide after breaking beneath the 4,070 support. The price is now heading for a key support zone around 3,885, where a major upward trendline offers confluence. If the price gets there, buyers can be expected to step in with a defined risk below the trendline, positioning for a rally to fresh record highs. Sellers, meanwhile, will look for a break lower to increase bearish bets toward 3,500 next.
GOLD TECHNICAL OUTLOOK β 4 HOUR TIMEFRAME
The 4-hour chart provides a clearer view of the selloff that followed the break under 4,070, as more sellers joined to target the 3,885 level. If a pullback comes before that, sellers may step in once more around the 4,070 resistance, with a defined risk above it, to keep pushing into new lows. Buyers, meanwhile, will look for a break higher to extend the rebound toward the downward trendline.
GOLD TECHNICAL OUTLOOK β 1 HOUR TIMEFRAME
The 1-hour chart shows a minor downward trendline defining the bearish momentum. Sellers will likely keep leaning on that trendline, with risk above it, to press toward the 3,885 support. Buyers will be looking for a break higher to enter and drive a pullback into the major downward trendline, with 4,070 resistance as the first target. The red lines mark today's average daily range.
FORTHCOMING CATALYSTS
The week closes out today with the US Flash PMIs.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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