Gold opened today’s session on a notable decline as it failed to break the channel’s upper line, noting that the Simple Moving Average (SMA) 9 provides negative signals, as the price moves below it on the 4-hour time frame.

Gold is currently trading above the weekly pivot point at $3391, if it manages to hold above it then maintain trading above the channel’s upper line, the yellow metal could resume its main upward trend towards $3488 then $3544.

On the downside, if gold prices fail to cling above the weekly pivot point at $3391, it will lose its positive momentum, retesting the first support level at $3335. A sustained move below it could put downward pressure on gold towards the second support level at $3237.

Regarding the latest major events affecting global markets, the recent confrontations between Israel and Iran led to a significant rise in gold prices, as it is considered a safe haven asset during times of geopolitical tension. The events also caused volatility in the oil markets and increased fears of disruption to global supply chains.

Today markets will also focus on the meeting of the G7 leaders (Germany, France, Italy, UK, USA, Japan, Canada). Media reports indicated that the representatives intend to release a joint statement calling on both parties to ease tensions.

As for economic data, investors are closely watching the release of several important economic data this week, which could have a significant impact on short-term market trends. The main highlight will be the Federal Reserve’s interest rate decision, where analysts predict U.S. policymakers will keep rates unchanged at 4.5%.

Thirty minutes following the Federal Reserve’s rate decision, attention will shift to Chair Jerome Powell’s press conference. Investors will closely analyze his remarks for any signals on the potential timing of future interest rate cuts.