Gold Ready To Shine Again?

This is a quick QuickTakes on gold. Its price seems to be holding above its 200-day moving average on news that Iran and the US have reached an agreement on a memorandum of understanding to extend their ceasefire for 60 days, but President Donald Trump has yet to approve it, according to Reuters. The price of gold peaked at a record $5,318 per ounce on January 29 (chart). It fell sharply during the war in the Middle East in March to $4,375 near the end of the month. It rebounded through mid-April when a ceasefire was in place. Now it seems to be testing its March 26 low, its 200-day moving average, and its intermediate uptrend line. That's quite a bit of support, which should hold, in our opinion.

The drop in the price since the end of January has put it back within an upward-trending channel that began in late 2023 (chart). Traders may be anticipating that a 60-day extension of the ceasefire would confirm that neither side wants to resume the shooting war.