Gold Prices Rise Over 1% Amid Middle East Tensions and Dovish Fed Sentiments
GOLD prices (XAU/USD) surged by more than 1% on Monday, crossing the mid-$1,800 threshold, as concerns about escalating geopolitical tensions in the Middle East reverberated through markets. This safe-haven asset, known to thrive during periods of political and economic unrest, found additional support in the backdrop of declining US Treasury bond yields. These yields retreated due to diminishing expectations of imminent interest rate hikes by the Federal Reserve (Fed).
The subdued performance of the US Dollar (USD) further propelled the precious metal upwards for the third consecutive day, a trend that continued into Tuesday. GOLD achieved a one-week high during the Asian trading session, marking a recovery of more than $50 from the seven-month low recorded just the previous Friday.
However, the overall optimism surrounding equity markets has restrained bullish traders from making fresh XAU/USD investments, capping the extent of gains.
 scheduled for this week. These include the release of the FOMC monetary policy meeting minutes on Wednesday, followed by the latest consumer inflation figures on Thursday.</p><h2>Technical Outlook for Gold</h2><p>In terms of technical analysis, a sustained rise above the $1,865 level is expected to clear the path for further advances, potentially aiming for the next significant obstacle near the $1,885 range.Close behind is the $1,900 psychological level, in proximity to the 50-day Simple Moving Average (SMA), which is likely to serve as a crucial pivot point. If this level is decisively surpassed, it would indicate that <span><a
style=){kind=spacer}
GOLD may have formed a short-term bottom, creating the potential for additional upswings, with the 200-day SMA positioned approximately within the $1,928-1,930 region.
On the contrary, a significant downturn could find initial support near the $1,855-$1,850 zone before targeting the $1,835-1,834 region. A convincing break below the latter range would suggest that the corrective bounce has exhausted itself, possibly leading GOLD to the $1,820 support level, on its way to testing the multi-month low around $1,810.
It’s worth noting that the presence of a death cross on the daily chart, where the 50-day SMA remains notably below the 200-day SMA, calls for caution among bullish traders, urging them to assess the situation before considering further bullish positions.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals