As the XAU/USD chart shows, the gold price has been holding within the $5,060–$5,200 range over the past several sessions.

Bullish view: the key support is the lower boundary of the long-term channel that has been in place since the beginning of 2026.

Bearish view: pressure on the price comes from statements by President Trump suggesting that the conflict in the Middle East could end soon. Yesterday, the US president described the operation in Iran as a “small incursion” and a “short-term” measure, which helped ease geopolitical risks and reduce demand for gold as a safe-haven asset.

Technical Analysis of the XAU/USD Chart

On the morning of 2 March, while analysing gold price movements following the attack on Iran, we confirmed the validity of the long-term ascending channel and also:

→ drew a local purple channel;
→ noted that the price was trading in close proximity to resistance lines;
→ suggested that emotions would settle and that the gold price might pull back, with support likely emerging in the $5,250–$5,300 area.

Indeed, later that evening the indicated zone acted as local support (shown by the blue arrow), but by 3 March the pullback had extended to the lower boundary of the blue channel.

It is worth noting that yesterday’s attempt by the bears (marked by the red arrow) failed to gain continuation — a sign that selling pressure may be weakening. Therefore, it would be reasonable to expect bulls to attempt to regain the initiative. A closer look at the XAU/USD chart also reveals that yesterday’s rising local lows form a cup-and-handle pattern.

At the same time, in the near term an important test of bullish intent may come at the breakout level of the purple channel around the $5,250 mark.

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