Gold Declines for Third Day as Iran War Raises Inflation Risks

The three-day downtrend in gold prices suggests that selling pressure may persist in the short term, despite inflation risks stemming from the Iran war. Although the RSI is approaching overbought territory at 65, it has not yet signaled a reversal. The MACD remains in positive territory, but momentum could weaken. The SMA20 and SMA50 are very close to each other, indicating potential for sideways movement. Geopolitical risks in the news headlines may support gold in the medium term, but the short-term bias remains bearish.

The news headline indicates that geopolitical risks, specifically the Iran war, are increasing inflation concerns. While this is generally supportive for gold prices, the decline in gold for the third consecutive day suggests that selling pressure persists in the short term. Technical indicators are giving mixed signals: the RSI is neutral at 51, the MACD remains negative but is approaching the signal line, and the price is above the SMA20 but below the SMA50. Therefore, it is difficult to determine a clear direction in the short term; the market is caught between geopolitical risks and technical resistances.