Gold Prices Headed Towards $3,800 per Ounce as Technical Risks Mount, Analyst Says

[https://www.ibtimes.co.uk/gold-prices-drop-us-iran-conflict-1789917](https://www.ibtimes.co.uk/gold-prices-drop-us-iran-conflict-1789917)

Gold prices declined after US President Donald Trump failed to offer certainty over the US-Iran war. At one point, Trump said the war could end in a few weeks, but in the next moment, he warned of hitting Iran 'extremely hard' before pulling back.

Avi Gilburt, founder of ElliottWaveTrader, told a media outlet he sees two distinct technical paths that could drive down gold prices below $4,000 per ounce, towards $3,800.

Gilburt is closely monitoring current price action, as the first technical path would see gold prices hit resistance near current levels and then trend down, warning that the second path is more severe. Interestingly, he is looking for gold prices to reach the $4,800 resistance level, then rise to $5,200 before crashing hard.

This path is more evil or deceptive, because the higher prices will convince everyone that the correction is over, but it's really just getting started,' he said. According to the veteran analyst, the outlook for silver mirrors that of gold, with downside risk toward $53.50.

However, Gilburt stressed that if his target level holds as support, it could offer a buying opportunity, although the rally that follows will be crucial in deciding if the broader trend stays bullish or shifts into a longer-term bear phase.