The recent tragic news of Iranian President Ebrahim Raisi’s death in a helicopter crash has had a significant impact on the price of gold. The helicopter crash, which also claimed the lives of Foreign Minister Hossein Amir-Abdollahian and other officials, has led to a surge in the price of gold. As reports of the search for the helicopter in the mountainous region near the Azerbaijan border spread, uncertainty about the situation in Iran has driven investors towards the safe-haven asset of gold.
Following the news of the helicopter crash, the price of gold reached an all-time high of $2450, sparking speculation about whether the rally can continue. A technical analysis of the gold price reveals several key points to consider:
– The long-term ascending blue channel remains relevant, with the price nearing its upper boundary.
– The price is approaching the median of the ascending black channel, which may act as a resistance level.
– A bearish divergence is forming on the RSI indicator, indicating a potential downturn in the price.
– The recent peak in the gold price was followed by a decline, influenced by an official statement from Israel denying involvement in the crash.
The absence of a sharp rise in the XBR/USD oil price, despite the heightened tensions in the Middle East, suggests that the fears of escalation may be subsiding. As a result, a correction in the XAU/USD chart can be expected, possibly towards the lower boundary of the short-term channel. In this scenario, the $2400 level, which was previously seen as a significant resistance, may now act as a key support level for the price of gold, attracting both bulls and bears in the market.
The tragic events surrounding the death of Iranian President Ebrahim Raisi have had a profound impact on the price of gold, leading to a significant rally driven by uncertainty. As investors navigate the complex geopolitical landscape in the aftermath of this event, technical analysis suggests that a correction in the gold price may be on the horizon. It is essential for traders to closely monitor the market dynamics and be prepared for potential shifts in the price of gold in response to unfolding developments.