From a technical perspective, gold is currently in a clear short-term downtrend following the initial geopolitical spike. Gold appears to be waiting for a stronger catalyst.
Are ground troops what gold needs to start moving upward?
Iran has claimed it could mobilise more than 1 million troops to counter what it describes as a “suicidal” U.S. ground war on Iranian soil.
The United States has deployed approximately 5,000 Marines from bases in Japan and California, alongside 2,000 personnel from the elite 82nd Airborne Division. In addition, the USS Tripoli has just arrived carrying a further 3,500 troops.
Although, diplomatic efforts are apparently still active. Talks between the U.S. and Iran are expected to take place in Pakistan in the coming days.
The key level to watch is around $4,600, which is now acting as a potential resistance.
The key trading question around any ground troop invasion announcement is whether gold would deliver only a brief spike on the news or begin a more sustained move higher.
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Trading involves risk and may not be suitable for all investors. The information provided in this article is for educational purposes only and does not constitute financial advice. Always conduct thorough research and seek professional advice before making any investment decisions.
