24K99 News Monday (April 20) morning trading in EuropeBingoblitzdownloadSpot gold accelerated its short-term dive in the short term, and the price of gold is now falling towards the $2350 / oz mark, falling more than $40 on the day. Dhwani Mehta, an analyst at FXStreet, wrote a new article to analyze the technical prospects of gold prices.

As the panic in the Middle East subsided, gold prices continued to fall, Mehta wrote. Judging from the gold 4-hour chart, as the gold price continues to fall below $2370 / oz, the gold price is now targeting $2350 / oz.

Earlier Friday, ABC News quoted a U.S. official as saying that Israeli missiles hit a site in Iran, sparking widespread risk aversion. However, Israel did not issue an official comment to confirm the news, and the Iranian authorities denied it, which put the market into risk reset mode.

Gold initially surged to nearly $2420 an ounce on Friday because of rising geopolitical risks, but fell below the $2400 an ounce mark as risk sentiment rebounded. The sharp reversal in yields on the dollar and Treasuries also contributed to a correction in gold prices on Friday.

Mehta said gold prices could gain momentum for a further correction if new demand is found for the dollar later on Monday. There is no top data release from the US economic calendar on Monday, so risk sentiment and dollar movements will continue to affect gold prices.

Meanwhile, the Fed entered a "quiet period" on Saturday before announcing its policy on May 1. Geopolitical developments will also attract the attention of investors.

Analysis on the Prospect of the latest Technology of Gold

As can be seen from the gold 4-hour chart, gold has broken through and fallen below the 21-cycle simple moving average (SMA) of $2382 / oz and $2370 / oz.

As gold falls below $2370 an ounce, gold could start a new downward trend and fall to a 100-cycle SMA ($2325 / oz), also a low on April 15, Mehta said.

However, gold sellers need to overcome the psychological barrier of $2350 an ounce before then.

Mehta said that the relative strength Index (RSI) of the leading indicator has entered a negative range, hovering at 48.BingoblitzdownloadNear .00, it proves the potential of bearish.

On the other hand, gold prices may face the initial obstacle of $2382 / oz (previous support is now resistance) on the road to recovery. After that, the $2400 / oz level will be challenged.

If the gold price breaks through 2400, it will provide new upward momentum for the gold test high of $2418 an ounce on Friday. Looking further up, the all-time high of $2432 an ounce will constitute resistance.

At 14:47 Beijing time, spot gold was at US $2351.80 / oz.