The Middle East conflict drives up the price of gold.
The recent escalation of conflict between Israel and Palestine began on Saturday when the markets were closed. This may have somewhat mitigated the impact on trading, as the initial concerns about a broader conflict in the Middle East would undoubtedly affect the markets.
The week started with a surge in the price of gold, rising by nearly 1% (an increase of $17 per ounce), primarily due to the escalation of conflict in the Middle East. Under the influence of geopolitical tensions, investors have been seeking safe havens, investing in precious metals and commodities. The US dollar responded positively to the war. Despite the initial strong performance of the US dollar due to a positive non-farm employment report, it could not suppress the rise in gold prices.
If the consequences of the war do not escalate further, then safe-haven actions may be temporary, especially as risk sentiment weakens, and both the US dollar and gold may weaken.
XAU/USD, H4
The price of gold is trading higher after breaking through the previous resistance levels. The RSI is above 68, indicating that gold may continue its upward trend.
Resistance levels: 1860.00, 1890.00
Support levels: 1835.00, 1810.00
The week started with a surge in the price of gold, rising by nearly 1% (an increase of $17 per ounce), primarily due to the escalation of conflict in the Middle East. Under the influence of geopolitical tensions, investors have been seeking safe havens, investing in precious metals and commodities. The US dollar responded positively to the war. Despite the initial strong performance of the US dollar due to a positive non-farm employment report, it could not suppress the rise in gold prices.
If the consequences of the war do not escalate further, then safe-haven actions may be temporary, especially as risk sentiment weakens, and both the US dollar and gold may weaken.
XAU/USD, H4
The price of gold is trading higher after breaking through the previous resistance levels. The RSI is above 68, indicating that gold may continue its upward trend.
Resistance levels: 1860.00, 1890.00
Support levels: 1835.00, 1810.00