The gold price set a technical signal last week while providing fresh fuel for the debate over its future direction.

For almost four weeks, the war against Iran has kept the world on edge – a conflict that leaves deep marks not only geopolitically but also economically. Volatility and uncertainty in global markets are increasing daily.

The gold price has undergone a sharp correction since its January high, unsettling many investors. The price decline of more than $1,000 per ounce appears at first glance to represent a break in the previous uptrend. However, according to analysts at WisdomTree, this movement reflects less a fundamental change in the macroeconomic situation than a combination of position adjustments, liquidity needs, and short-term market pressure.

It could be time to invest for gains in the beaten-up gold (GC=F) market. "This makes for, we think, a reasonable entry point," Barclays strategist Ajay Rajadhyaksha said in a note on Thursday. The buy-the-dip trade reflects a few factors that investors may be forgetting, Rajadhyaksha argued.

At first glance, the market reaction to the outbreak of war following U.S. and Israeli strikes on Iran appeared deeply counterintuitive.

March 13 (Reuters) - Gold was on track for a second straight weekly loss, even as it edged higher on Friday, as surging oil prices dampened rate cut bets and caused investors to cover margin calls, while a rising dollar and U.S. yields also pressured prices.