- Gold prices (XAU/USD) surge, trading at $1,929.20, reflecting a gain of over 3% amidst the escalating Israel-Palestine conflict.
- Shift from aerial to ground operations in Gaza by Israel intensifies geopolitical tensions, bolstering safe-haven assets.
- Deteriorating US Consumer Sentiment and dovish remarks from Philadelphia Fed President Patrick Harker apply pressure to US Treasury yields.
Gold price (XAU/USD) is sustaining an outstanding rally on Friday as geopolitical tensions rise in the conflict between Israel and Palestine. Traders seeking safety flock towards the yellow metal amid times of uncertainty, while the Greenback (USD) is also advancing. The XAU/USD is trading at $1,929.20 a troy ounce, gains more than 3%, after bouncing from daily lows of $1,868.69
XAU/USD approaches $2,000 as investors seek safe havens amidst geopolitical strife and deteriorating US Consumer Sentiment
XAU/USD found dip buyers as Gold prices rose more than 3% on developments that Israel is shifting from air to ground operations in the Gaza strip, spurring fears the conflict could spill toward other regions in the Middle East. Consequently, safe-haven assets remain bid towards the weekend, with the non-yielding metal's chances of hitting the $2,000 mark increasing.
In the meantime, economic data from the United States (US) witnessed that Consumer Sentiment amongst Americans continues to deteriorate, according to the University of Michigan (UoM) October survey. Aside from this, Philadelphia Fed President Patrick Harker commented that no additional rate hikes “are likely” to be needed.
Consequently, US Treasury bond yields decelerated, particularly the US 10-year Real Yields, which remain at 2.289%, falling seven basis points, following the footsteps of the 10-year benchmark note, yielding 4.629%, down 7 basis points.
In the meantime, the US Dollar Index (DXY) advances 0.08% and sits at 106.66, usually a headwind for Gold prices, with both safe-haven, which generally correlates negatively, moving in tandem to the upside.
XAU/USD Price Analysis: Technical outlook
The ongoing Gold rally witnessed the yellow metal climbing above the 20, 50, and 100-day moving averages (DMAs), with buyers targeting the 200-DMA at $1929.47. A decisive break of the latter could propel Gold toward the $1950 psychological area before aiming toward a July 20 swing high of $1987.42. Conversely, failure at the 200-DMA could expose XAU/USD to selling pressure and drag the precious metal towards the confluence of the 50-DMA and the $1900 figure.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD looks bullish near term
AUD/USD managed to climb to six-month highs around 0.6760, although the bullish attempt seems to have run out of steam in response to the late rebound in the US Dollar.
EUR/USD faces initial up-barrier near 1.0850
EUR/USD halted its multi-day advance on Monday, facing some renewed downward pressure after faltering around the 1.0850 region on the back of the resurgence of the buying interest in the Greenback.
Gold trims recent gains, holds above $2,350
After posting impressive gains on Friday, Gold stays under bearish pressure and falls toward $2,370 on Monday. Reports of China's Central Bank pausing Gold purchases for the second straight month in June weighs on XAU/USD.
Ethereum fails to move below key support level again as issuers file amended S-1s
Ethereum is down 0.3% on Monday as prospective spot ETH ETF issuers returned their amended S-1 registration statements to the Securities & Exchange Commission (SEC). Meanwhile, ETH long-term holders are gradually returning to the market after years on the sidelines.
U.K.: Firming growth, lingering inflation, suggest cautious Bank of England
The first half of 2024 has seen a gradual, but clearly perceptible, improvement in U.K. economic momentum. Q1 GDP rose 0.7% quarter-over-quarter, while more recent sentiment and activity data point to ongoing growth in Q2.