Gold Price Flirts with $2,000 Mark Amid Geopolitical Tensions: A Technical Insight

 GOLD prices (XAU/USD) are on an upward trajectory, marking gains for the second consecutive day this Thursday. As the Asian trading hours unfold, the metal trades in the proximity of $1,985, registering a rise of approximately 0.30%. Notably, this comes close on the heels of a five-month peak achieved last Friday. Gold’s buoyancy is, in part, attributed to the escalating tensions in the Israel-Gaza region.

Market participants are directing their attention towards pivotal US economic indicators, which could offer insights into the Fed’s prospective interest rate adjustments. Such rate decisions will undeniably shape the immediate course for GOLD prices. Today’s economic agenda from the US encompasses the unveiling of the Advance Q3 GDP data, Durable Goods Orders, the routine Weekly Initial Jobless Claims, and the Pending Home Sales statistics. Moreover, the scheduled discourse by Fed Governor Christopher Waller, coupled with the trajectory of US bond yields, is poised to modulate the USD’s valuation, thereby imparting momentum to the XAU/USD.

Gold’s price trajectory faces a potential hurdle as it approaches the significant $2,000 threshold. Technically speaking, the recent buying resurgence around the $1,953-1,952 pivot, which has now morphed into a support zone, coupled with the ensuing upward movement, lends credence to the bulls.

However, it’s crucial to note that the daily chart’s Relative Strength Index (RSI) is teetering on the edge of the overbought domain. This implies that gold prices might encounter formidable resistance in the vicinity of the $2,000 benchmark.

Surpassing this could pave the way for a further ascent towards the $2,022 milestone. Conversely, gold’s support proximate to $1,980, appears to serve as an immediate bulwark against potential declines, followed closely by the $1,971-1,970 bracket.