FUNDAMENTALOVERVIEWGold rallied on Fridayfollowing a barrage of positive news on the US-Iran front that seemed to pointto an imminent deal after Iran announced the reopening of the Strait ofHormuz. The positive price action reversedheading into the weekend though after Trump said that the US would keep theblockade of the Strait of Hormuz in place until a deal with Iran was finalized.Traders might have hedged into the weekend due the risk of an escalation. Thisis exactly what happened as Iran reclosed the Strait in retaliation to the USblockade.This resulted in a negativegap when the markets reopened yesterday, and despite the positive developmentsand the expected US-Iran talks tomorrow in Islamabad, the uncertainty keepscapping the upside in gold.The price action continuesto be driven by US-Iran headlines, and this is unlikely to change until we getan official resolution. For now, the downside in gold should remain limitedamid positive expectations and a resolution should trigger a rally towards the5,000 level. On the other hand, if the ceasefire doesn’t get extended and thewar resumes, gold price are likely to quickly fall back into the 4,000 level. GOLD TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that gold just lacks momentum to extend the rally into the 5,000 level amidUS-Iran uncertainty. If the price gets there, we can expect the sellers to leanon the downward trendline with a defined risk above it to position for a dropinto the major upward trendline around the 4,100 level. The buyers, on theother hand, will look for a break higher to increase the bullish bets into the5,400 level next.GOLD TECHNICAL ANALYSIS – 4HOUR TIMEFRAMEOn the 4 hour chart, wehave a minor upward trendline acting as support. The buyers will likely lean onthe trendline with a defined risk below it to keep pushing into the majordownward trendline. The sellers, on the other hand, will look for a break to extendthe pullback into the 4,550 level next. GOLD TECHNICAL ANALYSIS – 1HOUR TIMEFRAMEOn the 1 hour chart, there’snot much we can add here but from a risk management perspective, the buyerswill have a better risk to reward setup around the upward trendline to positionfor new highs, while the sellers will need a break to open the door for newlows. The red lines define the average daily range for today. UPCOMING CATALYSTSToday we have the US Retail Sales. Tomorrow, we should have the US-Iran talksin Islamabad. On Thursday, we get the latest US Jobless Claims figures and theUS PMIs. The focus remains on US-Iran headlines ahead of the ceasefire deadlinetomorrow at midnight. This article was written by Giuseppe Dellamotta at investinglive.com.