• Thu. May 30th, 2024

Gold Price Forecast: XAU/USD rebounds on market caution, aims to reach $2,400

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  • Gold price appreciates as traders exercise caution amid concerns about escalating tensions in the Middle East.
  • Jordan’s Foreign Minister Ayman Safadi warned that Israeli retaliation against Iranian strikes could potentially escalate the conflict throughout the entire region.
  • The correction in the US Dollar supports the demand for the yellow metal.

Gold price recovers its recent losses, trading around $2,370 per troy ounce during the Asian session on Thursday. The safe-haven yellow metal gains ground as traders exercise caution amidst heightened geopolitical tensions in the Middle East.

According to reports from Reuters, Jordan’s Foreign Minister Ayman Safadi stated in an interview released by state media on Wednesday that Israeli retaliation against Iranian strikes could pose a significant risk of dragging the entire region into a devastating war.

Furthermore, Israel’s Air Force announced on Wednesday that its fighter jets had targeted Hezbollah infrastructure north of Baalbek in eastern Lebanon. Concerns are rising that increased exchanges of fire between Israel and Hezbollah could lead to further escalation.

Prime Minister Benjamin Netanyahu of Israel asserted that Israel would make its own decisions regarding how to defend itself, as Western countries urged restraint in responding to a series of attacks from Iran.

Meanwhile, the US Dollar Index (DXY) loses ground, primarily influenced by subdued US Treasury yields. This correction in the US Dollar is to make Gold less expensive to buy for investors using other currencies.

Federal Reserve Bank of Cleveland President Loretta Mester, speaking on Wednesday, acknowledged that inflation has surpassed expectations. She stated that the Fed requires further assurance before confirming the sustainability of 2% inflation.

Additionally, Fed Chair Jerome Powell commented on Tuesday that recent data indicates limited progress in inflation this year, suggesting an extended period before reaching the 2% target. This statement potentially signals a hawkish stance on upcoming monetary decisions from the Fed. Higher interest rates could diminish the demand for non-yielding assets like Gold.

XAU/USD

OVERVIEW
Today last price 2372.96
Today Daily Change 12.04
Today Daily Change % 0.51
Today daily open 2360.92
TRENDS
Daily SMA20 2281.86
Daily SMA50 2159.7
Daily SMA100 2097.03
Daily SMA200 2016.22
LEVELS
Previous Daily High 2395.63
Previous Daily Low 2354.7
Previous Weekly High 2431.61
Previous Weekly Low 2303.02
Previous Monthly High 2236.27
Previous Monthly Low 2039.12
Daily Fibonacci 38.2% 2370.34
Daily Fibonacci 61.8% 2379.99
Daily Pivot Point S1 2345.2
Daily Pivot Point S2 2329.49
Daily Pivot Point S3 2304.27
Daily Pivot Point R1 2386.13
Daily Pivot Point R2 2411.35
Daily Pivot Point R3 2427.06
On Key

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