Gold Price Forecast: XAU/USD rallies 1% as Middle East woes spark flight to safety


  • Gold price cheers risk-aversion on Middle East violence, briefly regains $1,850.
  • The US Dollar rebound limits the Gold price advance while US Treasury bond yields drop.
  • Gold price eyes a sustained rebound and critical US Nonfarm Payrolls data.   

Gold price is building on Friday’s rebound, briefly recapturing the $1,850 barrier early Monday. Escalating geopolitical tensions in the Middle East are spooking markets, as they seek safety in traditional safe havens such as Gold price, the US Dollar, Treasuries etc.

Renewed geopolitical risks came to the fore after the Hamas militant group in Gaza, Palestine, militarily attacked Israeli towns in an unprecedented move. In response, Israel launched airstrikes on Gaza and declared war against the Palestinian enclave of Gaza on Sunday.

Gold price is also capitalizing on worries that the geopolitical conflict could risk a fresh upsurge in oil price, threatening global inflation and economic outlook. Oil prices are already up over 4%, in a reaction to the Middle East conflict, which could threaten Oil price supply.

However, further upside in Gold price appears elusive, as the US Dollar also gains upside traction on increased safe-haven demand.

Meanwhile, a holiday in Japan is also helping exaggerate the moves in Gold price, as investors now look forward to the Middle East developments, Oil price movements and the upcoming US inflation data for fresh trading impetus.  

At the time of writing, Gold price is adding 0.94% on the day to trade at $1,850, hitting a fresh five-day high at $1,856 in the opening trades.

Gold price technical levels to watch

XAU/USD

Overview
Today last price 1849.50
Today Daily Change 14.40
Today Daily Change % 0.79
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

 

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