- Gold price resumes uptrend on Middle East escalation after Iran attacked Israel over the weekend.
- US Dollar stays uninspired by geopolitical tensions, as risk sentiment remains in a sweeter spot.
- Gold price likely to stay supported ahead of top-tier US Retail Sales data.
Gold price is back in the green above $2,350 early Monday, having witnessed the long-due correction from record highs of $$2,432 on Friday.
Gold price opens higher, then retraces
Gold price saw a positive start to the week in early dealings, mainly lifted by the escalation in the conflict between Iran and Israel over the weekend. Investors scurried for safety in the traditional safe haven, as traders geared up for a new week following Iran’s drones attack on Israel late Saturday.
Gold price stays underpinned by markets’ fears that Iran’s unprecedented weekend strike on Israel could fuel rounds of retaliation. However, the UK, France and Egypt condemned Iran's action while Saudi Arabia called for restraint, offering some comfort to markets, as risk sentiment remains in a sweeter spot in early Asia.
The S&P 500 futures gain 0.30% on the day, reflecting the market optimism, which is capping the further upside in Gold price.
Looking ahead, if the Middle East conflict intensify, Gold price is likely to see an extension of the rebound toward $2,400. But a resurgent demand for the US Dollar on increased safe-haven flows and hawkish US Federal Reserve (Fed) expectations could act as a headwind to the Gold price upswing.
The focus will also be on the high-impact US Retail Sales data due later on Monday, with the monthly headline figure to increase by 0.3% in March, slower than February’s 0.6% rise.
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