Gold Price Recovers Following Geopolitical Conflict

Fundamental Analysis

* Surging Conflict: Gold prices have rebounded amid escalating geopolitical tensions in the Middle East and the ongoing Ukraine conflict, driving increased demand for safe-haven assets. On Sunday, November 17, Israeli airstrikes reportedly killed dozens in Gaza, according to local civil defense sources, and targeted a central district in Beirut. A Lebanese source confirmed the death of Mohammed Afif, Hezbollah’s spokesperson, in a raid on the Ba’ath party offices in Ras al-Nabaa, a densely populated residential area. The strike, which caused damage to nearby buildings, was carried out without prior warning. Meanwhile, in a significant policy shift, the Biden administration has authorized Ukraine to use U.S. weaponry for strikes inside Russia, Reuters reports.

Technical Analysis

* Technical Breakout: Gold price was traded higher following prior rebound from the support level 2550.00. MACD which illustrate bullish momentum signal suggest the commodity to likely extends its rebound.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 2625.00. Conversely, a potential reversal is also to be expected and the price could head back towards 2550.00.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

With a lack of crucial U.S. data this week, investors are expected to remain focus to the developments in the Middle East and the Russia-Ukraine conflict to gauge further market sentiment for the safe-haven commodity.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.