FUNDAMENTAL OVERVIEW Gold briefly spiked below the 4,110 support yesterday, although there was no clear catalyst behind the move. It may have simply been a case of stops being triggered after the price pierced the support level. Nevertheless, the losses were quickly erased, and gold is now trading back above 4,110.The bias remains neutral to bearish given the lack of any meaningful improvement in the fundamental picture. Gold could come under renewed pressure in the coming days as oil prices have been steadily rising following reports from The Atlantic that the White House asked the Pentagon to develop military options for strikes against Iranian targets, potentially before the midterm elections.Moreover, the Pentagon has reportedly instructed the US Central Command (CENTCOM) to complete preparations for potentially resuming major combat operations, according to Axios.No final decision has been made yet, but the renewed escalation risks are supporting the oil market again. If this continues, Treasury yields could extend their gains while rate hike expectations strengthen further.If the situation does not de-escalate soon, we could see another flush lower in gold. However, if the Fed continues to sound more dovish than markets, real yields could decline and provide a floor under gold prices. GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that gold(CFD contract) is still consolidating near the lows. If we get a pullback into the major downward trendline, we can expect the sellers to lean on the trendline, with a defined risk above it, to position for a drop into the 3,885 level. The buyers, on the other hand, will want to see the price breaking higher to pile in for a rally into the 4,700 level next, with the 4,400 level as the first target. GOLD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see that yesterday the price probed below the weekly low but eventually erased all the losses. From a risk management perspective, the sellers will have a better risk to reward setup around the trendline to keep targeting new lows, while the buyers will need a break higher to start targeting the 4,400 level next. GOLD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see more clearly the spike to the downside yesterday which might have been caused by stops getting hit after the break of the 4,110 support. The buyers will likely continue to lean on the 4,110 support to keep targeting a pullback into the trendline, while the sellers will look for a break to pile in for a drop into the 3,885 level next. The red lines define the average daily range for today.UPCOMING CATALYSTSTodaywe have Fed’s Waller speaking and the latest US Jobless Claims figures. Tomorrow, we conclude the week with the University of Michigan Consumer Sentiment survey. This article was written by Giuseppe Dellamotta at investinglive.com.