However, a fierce struggle is underway. While the prospect of higher Fed rates for a long time to come puts strong pressure on non-yielding precious metals, the sudden escalation of geopolitical tensions between the US and Iran is generating structural demand for a strong safe haven underneath. A CPI figure below expectations could instantly crush these hawkish bets, causing a violent sell squeeze.
Based on the Elliott Wave Bearish Impulse structure monitored on the H1 timeframe, key structural levels include:
Major Resistance: 4,252.855 – This area acts as the main upside Confluence Zone, aligning with the 0.5 – 0.618 Fibonacci Retracement cluster. This is the key structural control point where sellers are expected to redefine the trend.
Current Price Zone: Trader near handle ~4,177,950.
Intermediate Support: 4,108.786 – The 1.272 Fibonacci Extension layer, which serves as a potential rebound zone for a short-term relief rally.
Major Liquidity Target: 4,037,146 – The ultimate target for the Impulsive Wave (5), perfectly aligned with the Fibonacci Extension level 1.618.
Where do you stand on this high-stakes H1 setup? Will the geopolitical shield protect gold from a hawkish CPI number, or do we slide straight towards 4.037? Share your ideas and graphics below!
