• Middle East tension spurs demand for perceives safe-haven assets.
  • A sharp fall in the US bond yields remained supportive of the move.
  • Investors now eye US ISM PMI, FOMC minutes for a fresh impetus.

Gold continued scaling higher through the early European session on Friday and climbed to four-month tops, around the $1545 region in the last hour.

The precious metal built on its recent strong gains and gained some strong follow-through traction for the fourth consecutive session on the last trading day of the week amid reviving safe-haven demand. Escalating geopolitical tension in the Middle East triggered a fresh wave of the global risk aversion trade and provided a strong boost to traditional safe-haven assets, including gold.

Gold benefits from escalating geopolitical tensions

Tensions in the Middle East intensified on reports that US airstrike killed Qassem Soleimani, the Iranian general who led the Revolutionary Guards’ Quds force. Iran’s supreme leader, Ayatollah Ali Khamenei, has vowed that “severe retaliation” awaits those who killed the commander and raised prospects of a further escalation in geopolitical tensions in the Middle East.

The risk-off mood was evident from a sea of red across the global equity markets and reinforced by a sharp fall in the US Treasury bond yields, which further played their part in providing an additional boost to the non-yielding yellow metal. Meanwhile, a subdued US dollar price action did little to influence the dollar-denominated commodity or hinder the momentum to the highest level since September 5.

Moving ahead, Friday's release of the US ISM Manufacturing PMI will now be looked upon for some short-term trading impetus later during the early North-American session. The key focus, however, will remain on the latest FOMC monetary policy meeting minutes, which might play a key role in determining the commodity's next leg of a directional move.

Technical levels to watch


Today last price 1543.4
Today Daily Change 15.11
Today Daily Change % 0.99
Today daily open 1528.29
Daily SMA20 1488.69
Daily SMA50 1480.73
Daily SMA100 1492.96
Daily SMA200 1422.92
Previous Daily High 1531.31
Previous Daily Low 1517.24
Previous Weekly High 1517.4
Previous Weekly Low 1477.55
Previous Monthly High 1525.1
Previous Monthly Low 1454.05
Daily Fibonacci 38.2% 1525.94
Daily Fibonacci 61.8% 1522.61
Daily Pivot Point S1 1519.92
Daily Pivot Point S2 1511.54
Daily Pivot Point S3 1505.85
Daily Pivot Point R1 1533.99
Daily Pivot Point R2 1539.68
Daily Pivot Point R3 1548.06



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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD bulls pulling away but a correction could be around the corner

AUD/USD bulls pulling away but a correction could be around the corner

AUD/USD remains firmly bid in the US session, but a touch below the impulse highs that were printed following a sell-off in the greenback on the back of the US inflation miss of expectations. AUD/USD shot to a high of 0.7109, extending its climb from the low of 0.6946. 


EUR/USD defends US inflation-inspired gains near 1.0300 at one-month high

EUR/USD defends US inflation-inspired gains near 1.0300 at one-month high

EUR/USD flirts with the 1.0300 threshold, after posting the biggest daily gains to refresh five-week high, as traders reassess the risk profile during early Thursday morning in Europe. The reduction in the US inflation numbers propelled hopes that Fed could ease on its rate hike trajectory.


Gold extends recovery towards $1,800 as hawkish Fed bets trim

Gold extends recovery towards $1,800 as hawkish Fed bets trim

Gold price has picked bids below $1,790.00 and is extending its recovery above the immediate hurdle of $1,792.00 amid a broader risk-on in the global market. The precious metal is expected to continue its upside run-up after a healthy correction to near $1,808.00.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: How to trap a hungry bear

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: How to trap a hungry bear

Crypto markets moves higher. Placing a countertrend short is still ill-advised. Higher targets remain possible for all assets. BTC tests the lower half of an ascending channel for the third time. ETH continues displaying bearish divergence but underline market strength remains. XRP in a make-or-break situation.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!