Gold Market Analysis:

Gold prices were range-bound in early Asian trade on Tuesday, October 15th, hovering around $2648.42 per ounce.  Gold prices gave up early gains and ended slightly lower on Monday as a resurgent US dollar offset safe-haven demand stemming from escalating geopolitical tensions. Gold had initially climbed to a one-week high of $2666.70 per ounce, but retreated as the dollar rallied to a ten-week high, eventually closing at $2648.49.

Israel expanded its targets in the war against Hezbollah in Lebanon on Monday, with an airstrike in northern Lebanon killing at least 21 people.  Meanwhile, millions of Israelis sought shelter from Hezbollah rocket attacks. Israel's military operations in Lebanon have so far been concentrated in the south, the eastern Bekaa Valley, and the suburbs of Beirut.

The ongoing conflict in Gaza, which marked its one-year anniversary, has resulted in at least 41,467 deaths, including 16,500 children, and 95,000 injuries.  The anniversary has been met with widespread condemnation of Israel's actions, with accusations of genocide.

Market participants will be assessing the impact of China's CPI data released over the weekend, while also keeping an eye on the New York Fed's one-year inflation expectations for September. Geopolitical developments and speeches from Fed officials will also be closely monitored.

Gold Technical Analysis:

Daily Chart:Gold prices formed a bearish candlestick with a long upper shadow on Monday, indicating selling pressure at higher levels. Despite the recent rebound, the MACD indicator remains in a bearish crossover, suggesting that the corrective phase may not be over and further downside is possible. Resistance at the previous high will be a key level to watch.

4-Hour Chart:Gold made two attempts to break higher on Friday and early this week, but failed to sustain gains above those levels. Prices have now retreated below $2650, with the decline slowing near current levels. The MACD indicator lines are converging, providing no clear directional signal, suggesting that the market may be entering a period of consolidation. The $2640-$2645 support zone will be critical in determining the near-term direction.

Overall:The short-term outlook for gold favors selling on rallies with selective buying on dips.

Key Resistance Levels: 2640, 2645, 2650, 2660

Key Support Levels: 2615, 2620, 2625, 2630

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