FUNDAMENTALOVERVIEWGold has given back all thegains it made during the US–Iran-driven rally, which might seem surprising atfirst. But this kind of move isn’t unusual. In periods of intense riskaversion, gold often falls alongside equities as financial conditions tighten,and traders are forced to deleverage to meet margin calls.It looks like the worst ofthe panic is behind us, and gold has started to gradually recover some of thoselosses. At the same time, the US–Iran conflict is pushing energy prices higher,which is feeding into rising inflation expectations. As long as tensionspersist, that backdrop should continue to provide support for gold.The main downside risk forgold would be a de-escalation. That would likely trigger another selloff, asthe market shifts its focus back to economic data, which has been showing clearstrength. We also have the NFP report on Friday. If tensions ease before thenand the jobs data comes in strong, it could be a double whammy for gold.GOLD TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that gold erased all the gains from the US-Iran led rally and bounced aroundthe 5,000 level as dip-buyers stepped in. There’s not much we can glean fromthis timeframe, so we need to zoom in to see some more details. GOLD TECHNICAL ANALYSIS – 4HOUR TIMEFRAMEOn the 4 hour chart, we cansee the price probed below the key support zone around the 5,100 level buteventually bounced back above it. We can expect the buyers to continue to stepin around the support with a defined risk below it to keep pushing into newhighs. The sellers, on the other hand, will look for another break to pile infor a drop into the 4,600 level next. GOLD TECHNICAL ANALYSIS – 1HOUR TIMEFRAMEOn the 1 hour chart, we cansee that we have a downward trendline defining the recent pullback and aresistance zone around the 5,250 level. If the price gets there, we can expectthe sellers to step in with a defined risk above the trendline to position fora break below the 5,100 support. The buyers, on the other hand, will look for abreak higher to increase the bullish bets into new highs. The red lines define theaverage daily range for today. UPCOMING CATALYSTSToday we have the US ADP and the US ISM Services PMI. Tomorrow, we get thelatest US Jobless Claims figures. On Friday, we conclude the week with the USNFP report. The market focus remains on the US-Iran war, so the data might notmatter much. This article was written by Giuseppe Dellamotta at investinglive.com.