New Clash; Gold Target: $5,400?

The price of gold rose to around $5,279, completely changing the market logic.

The US-Israeli air strikes on Iran are the main cause of current market fluctuations, and their intensity has exceeded any previous conflict.

Description of the event: “Beheading” strike and massive counterattack

Situation analysis: The war is raging and risks are expanding.

The situation has escalated from “deterrence” to “hot war” and risks are spreading in the Middle East. Iran declared 40 days of national mourning and vowed revenge.

The window for resolving the conflict through US-Iran negotiations has effectively closed. Any short-term news could lead to another round of escalation.

Before and after the outbreak of this geopolitical conflict, the gold market accumulated a number of positive factors, and the demand for safe havens increased rapidly.

Technical analysis:

1- Due to the impact of this important geopolitical event, technical analysis has shifted towards news-influenced factors, but major price levels remain the basis for developing strategies.

2- Gold prices strongly broke through the previous resistance level of $5,200, opening up new upside potential.

3- Major Support and Resistance Levels:

First support level: $5,250

Strong support: $5,200-5,170

First resistance level: $5,300

Next target: $5370-5424

March 2: Trading Strategies

Basic philosophy: follow the trend and avoid chasing highs.

implement:

If the opening price on Monday is higher than $5,279 and the price continues to rise in early trading, it is not recommended to chase the price immediately after the opening. Waiting for possible fixes to be confirmed.

1) If the price drops slightly to the $5250-5270 area and stabilizes, you can try to open a small buy position.

Stop loss orders should be placed below $5,200.

The first target: 5300-5320 US dollars, the second target: around 5370 US dollars.

2) If the price rises sharply and quickly after opening (for example, directly above $5,350):

Strategy: Stay neutral and avoid trying to chase prices higher.

Process: The risk-reward ratio of trying to chase prices higher at this point is very low.

Be patient and wait until prices stabilize or a technical correction occurs.

If you already have a position, consider taking profits at key resistance levels, such as around $5,370.

Important data next week: U.S. non-farm payrolls data for February is scheduled to be released next Friday. A slight improvement in market sentiment may have an impact on gold prices.

The gold market is currently experiencing significant activity and has entered its usual “event-driven” phase.

In Monday’s trading, it’s better to miss an opportunity than to make a mistake.

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