Gold market analysis

"Gold Prices May Form a Double Bottom Pattern in the Short Term" 22/4/2026 10:38 Completed
Iran announced that it would not attend the US-Iran talks scheduled for today, citing the US blockade of the Gulf of Oman and the Arabian Gulf as a violation of the ceasefire agreement. Iran will continue to block the Strait of Hormuz. Iran's state television pointed out that Iran's participation in the talks must be conditional on not raising issues that infringe upon Iran's independence and dignity, with the top priority being Iran's defense and missile capabilities, as well as its nuclear capabilities and technology. On the US side, Trump has thus decided to extend the ceasefire agreement. According to the Associated Press, Iran's ambassador to the United Nations said that the Iranian government has received signals from the US that it is prepared to lift the blockade. 

The situation between the US and Iran remains volatile, and oil and gold prices continue to fluctuate significantly. New York crude oil broke through the downtrend line on the hourly chart, reaching a high of $92.2 in the late New York session before falling sharply. This morning, it was hovering below $90. Spot gold prices rebounded after hitting a low of $4,772.93 in the early European session, but failed to break through $4,800. It rose to a high of $4,797.84 before continuing to decline, falling to $4,668.65 in the late New York session. It then staged a V-shaped rebound, rising to a high of $4,758.18 this morning. 

Gold prices yesterday approached the strong support level of $4,660, which is close to the 45-degree angle of Gann's square, indicating that the short-term price is likely to fluctuate between $4,660 and $4,810. From the hourly chart, the 50SMA is currently at $4,780, and the old TD downtrend line and the 50% retracement of the largest decline since last Friday are both very close to the 50SMA, suggesting that the technical resistance near $4,780 is extremely strong. 

Investors should not mistake this as meaning that $4,780 cannot be broken through. Instead, the greater the resistance, the stronger the upward momentum will be once it is broken. Based on the latest TD downtrend line, if it is broken through, the measured upward target is $4,870. Judging from the current situation, the short-term bottom is expected to appear tomorrow. Therefore, it is inferred that the gold price may form a double bottom pattern with yesterday's low. If it retraces to $4,724 or $4,713 within the day, it should be a relatively ideal entry point, and the 50SMA will be the first profit-taking target. 

The above content is for reference only and does not constitute investment advice.