• Wed. Jul 17th, 2024

Gold Price Forecast: XAU/USD extends gains near $1,850 on Middle East conflict

gold-metal-ingot-bullion-background-dollar-euro-bills_76263-394

Featured Brokers

Liquidity

Min. Deposit: 100 USD

Regulated: NFA, CFTC

Broker Type: ECN, STP

AvaTrade

Min.Deposit: $100

Regulated: CySEC

Broker Type: ECN, STP

FBS

Min.Deposit: $1

Regulated: ASIC, IFSC

Broker Type: ECN, STP

JustMarkets

Min.Deposit: 1 USD

Regulated: FSA, CySEC

Broker Type: STP

  • Gold price continues to trade higher on geopolitical tension.
  • The Palestine-Israel conflict could increase the demand for safe-haven assets like Gold.
  • Upbeat US jobs data supports the US Dollar (USD).

Gold price continues to move on an upward trajectory, trading higher around $1,850 per troy ounce during the Asian session on Monday. The prices of Gold are receiving upward support due to risk aversion, which could be attributed to the Palestine-Israel military conflict.

The ongoing military conflict in the Middle East between Hamas and Israel is being closely watched by the markets. The worry is that the conflict could intensify and extend to other parts of the region, introducing geopolitical uncertainties that might have repercussions on global markets.

The escalation of violence has the potential to prompt investors to seek refuge in traditional safe-haven assets, with Gold being a notable example. During periods of heightened geopolitical uncertainty, there tends to be an increased demand for safe-haven assets, and Gold is often viewed as a store of value in such situations.

The US Dollar Index (DXY) has bounced back after three consecutive days of losses, trading around 106.20, by the press time. The strength in the US Dollar (USD) can be attributed to the impressive US Nonfarm Payrolls data unveiled on Friday.

The jobs report for September revealed a notable increase of 336,000 jobs, surpassing the market expectation of 170,000. The revised figure for August stood at 227,000. However, US Average Hourly Earnings (MoM) remained steady at 0.2% in September, falling short of the expected 0.3%. On an annual basis, the report indicated a decline of 4.2%, below the anticipated consistent figure of 4.3%.

US Treasury yields have also rebounded, driven by expectations of the Federal Reserve (Fed) maintaining higher interest rates for an extended period. As of now, the 10-year US Treasury bond yield has once again stood at 4.80% near its peak since 2007.

Investors will likely monitor the upcoming International Monetary Fund (IMF) meeting, which is set to deliberate on strategies for stabilizing international exchange rates and fostering development.

Additionally, attention will be focused on the US Core Producer Price Index later in the week, as it plays a crucial role in gauging inflationary trends and economic conditions in the United States.

XAU/USD: ADDITIONAL IMPORTANT LEVELS

OVERVIEW
Today last price 1850.92
Today Daily Change 18.30
Today Daily Change % 1.00
Today daily open 1832.62
TRENDS
Daily SMA20 1887.46
Daily SMA50 1907.84
Daily SMA100 1927.22
Daily SMA200 1928.07
LEVELS
Previous Daily High 1834.94
Previous Daily Low 1810.51
Previous Weekly High 1849.16
Previous Weekly Low 1810.51
Previous Monthly High 1953.01
Previous Monthly Low 1846.37
Daily Fibonacci 38.2% 1825.61
Daily Fibonacci 61.8% 1819.84
Daily Pivot Point S1 1817.11
Daily Pivot Point S2 1801.59
Daily Pivot Point S3 1792.68
Daily Pivot Point R1 1841.54
Daily Pivot Point R2 1850.45
Daily Pivot Point R3 1865.97
On Key

Related Promotion