Gold market analysis

"Gold Price Reverses Sharply, But Double Bottom Pattern Unchanged" Completed on 24/7/2026 at 10:21  
Yesterday, oil prices surged while gold prices sharply declined. The main reason was that Houthi rebels in Yemen, backed by Iran, used drones and missiles to attack two Saudi Arabian oil tankers in the Red Sea and simultaneously blockaded the Bab el-Mandeb Strait. This waterway is a crucial passage linking the Gulf of Aden to the Red Sea, through which 12% of global crude oil exports transit via the Suez Canal. With the strait now blocked by Houthi forces, crude oil supply has been disrupted. 

New York crude oil surged, reaching a high of $94, as concerns over inflation reignited worries about interest rate hikes, weighing on gold prices throughout the day. Spot gold fell below $4,120 early in yesterday's European session, and the decline intensified, dropping to a low of $4,041 during New York midday trading before stabilizing. However, there was no strong rebound, and in this morning's early Asian session, it peaked at only $4,050.75. 

Yesterday's sharp drop in gold prices prevented it from closing above the 20SMA (currently around $4,068) for three consecutive trading days, but did not break the double-bottom pattern on the daily chart. Now we need to watch whether Trump responds with strong measures—I believe that either the U.S. or Israel may launch a military strike against the Houthi forces, reopening the Bab el-Mandeb Strait. This would likely cause oil prices to decline and gold to rebound again. I still expect $4,000 to remain a strong support level for gold, and in the short term, prices are likely to fluctuate between $4,000 and $4,210. 

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