GOLD Prices Experience Minor Correction Amidst Ongoing Geo...

30 окт. 2023 г.

Gold Prices Experience Minor Correction Amidst Ongoing Geopolitical Tensions

The price of gold (XAU/USD) has undergone a slight correction after reaching a month high, as market participants adopt a more cautious stance. The core reason behind this shift in sentiment is the widespread expectation that the Federal Reserve (Fed) will keep its current policy intact. This anticipation implies that the Fed is likely to maintain its stance of 'higher for longer interest rates,' potentially leaving room for future policy tightening. However, despite this minor correction, the short-term outlook for gold remains positive, particularly in the context of escalating geopolitical tensions in the Middle East.

When delving into the technical aspects of the gold price, it's evident that the precious metal is still engaged in a bullish rally, as observed on the hourly timeframe. This morning, the price exhibited a rebound from the 50% Fibonacci level, stemming from the previous price swing. Significantly, the dynamic trendline continues to function as reliable support for the price, affirming our analysis that the value of gold is poised to continue its ascent, given its reputation as a safe-haven asset in times of uncertainty.

Simultaneously, the Israeli military is actively preparing for a potential ground invasion in Gaza, with the objective of dismantling the Palestinian military presence in the region. This military maneuver is taking place amidst ongoing efforts by the United States, which is urging Israel to postpone any ground assault due to concerns that it may further complicate the existing hostage situation. Jordan, a neighboring nation, has issued a stern warning, cautioning that an Israeli ground war in Gaza could lead to a catastrophic humanitarian crisis of epic proportions.

In the near future, investors will maintain a vigilant watch on the United Nations Security Council meeting. This meeting will play a pivotal role in facilitating discussions about potential solutions for a ceasefire in the Israel-Palestine conflict. As the geopolitical situation in the Middle East remains fluid and unpredictable, the demand for gold as a safe-haven asset in these turbulent times is expected to persist.



Our preference

Long positions above 1961.250 with targets at 2020.00 & 2045.00 in extension.