Risk-off Sentiment Back in Markets, Gold Surges Above $1,500 Again

After a few days of weakness, gold is back to trading above the $1,500 level at the start of a fresh week, following the drone attacks on..

Gold - XAU/USD

After a few days of weakness, gold is back to trading above the $1,500 level at the start of a fresh week, following the drone attacks on Saudi oil facilities on Saturday. At the time of writing, GOLD is trading at a little above $1,503, after gaining over 1% in the wake of these attacks.

Yemeni Houthi rebels who are aligned with Iran have claimed that they were behind the attacks on the world’s largest oil processing facility. The attacks on Aramco’s facilities have cut over half of Saudi Arabia’s crude production output.

Although oil prices have recovered slightly after the US and Saudi confirmed that they would tap into their reserves to avoid disruption in oil supply, the risk-off sentiment is very much dominant in global financial markets. On Sunday, Trump stated that the US was ready for any kind of response to these attacks, increasing geopolitical tensions in the Middle East.

Later this week, gold can remain supported over the upcoming Federal Reserve meeting in which markets are widely expecting the central bank to turn dovish and announce yet another rate cut. Gold prices also enjoy support from the uncertainties surrounding Brexit until new developments towards a deal emerge from the UK.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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