On Thursday (October 3rd), spot gold remained stable in the Asian market, with gold prices currently trading around $2657 per ounce. Analyst Valeria Bednarik wrote an article analyzing the prospects of gold technology.

Bednarik wrote that the goal for gold is to recover its upward trend in the short term, with resistance levels around $2670 per ounce.

On Wednesday during the New York trading session, spot gold experienced significant fluctuations. After the release of stronger than expected US ADP data, the US dollar strengthened and gold prices fell sharply to $2640.91 per ounce; However, due to the tense situation in the Middle East, the gold price rebounded sharply from its low point and closed at $2658.44 per ounce.

On Wednesday local time, Iranian President Pezehezhian visited Qatar and held talks with Qatar's Emir (head of state) Tamim. At a press conference after the talks, Pezehiziyan stated that Israel's military actions against the Gaza Strip, attacks on Hamas leader Haniyeh in Iran, and military strikes against Lebanon have forced Iran to respond.

The Iranian Islamic Revolutionary Guard Corps issued a statement on Tuesday stating that Iran launched ballistic missiles at Israel that evening in retaliation for a series of recent Israeli actions. Israeli Defense Forces spokesperson Hagari issued a statement on the same day stating that Iran has launched over 180 ballistic missiles from its territory towards Israel.

Pezehiziyan warned that if Israel retaliates against Iran, Iran will give a stronger response.

According to the US news website Axios on Wednesday, Israeli officials stated that Israel will launch a "major retaliation" against Iran's large-scale missile attack on Tuesday within a few days, which may target oil production facilities and other strategic locations within Iran's borders.

Iran threatened on Tuesday that if Israel responds with force to the nearly 200 missiles it launched on Tuesday, Iran will launch another attack. Axios reported that Israeli officials said that if such a situation were to occur, all options would be on the table - including a strike on Iran's nuclear facilities.

Bob Haberkorn, Senior Market Strategist at RJO, said, "If Israel did indeed attack Iran, it would be very reasonable for gold prices to rise above $2700 per ounce

Due to concerns about the escalation of the situation in the Middle East, gold prices have risen by over 28% this year and are still close to the historical high of $2685.42 per ounce.

In times of political uncertainty, gold benefits from its safe haven nature and can benefit from a rate cutting environment due to its non interest bearing nature.

Short term technical prospects for gold

Bednarik stated that the daily gold chart shows that the price of gold reduced its earlier decline on Wednesday and hovered around the opening. The moving average is steadily rising, far below the current level of gold prices, maintaining a long-term bullish trend. At the same time, technical indicators have turned downwards, but they are far above the median line, with limited downward momentum, and do not imply a more severe decline in gold prices.

Bednarik added that in the near future, based on the 4-hour chart, the goal for gold is to restore its upward trend. The gold price is trading above the 20 cycle SMA, while the 100 cycle SMA and 200 cycle SMA are rising at levels far below the short-term moving average mentioned above, all of which support the continued bullish trend of the gold price. Finally, technical indicators have resumed their upward trend and are currently crossing the median line into a positive area, reflecting an increase in buying interest.

(4-hour chart of spot gold)

Bednarik provides the latest important support and resistance levels for gold prices:

Support level: $2652.60 per ounce; 2638.10 US dollars per ounce; 2623.25 USD/oz

Resistance level: $2670.00 per ounce; 2685.00 USD/oz; 2700.00 USD/oz