Gold Daily | Gold Rises on Middle East Tensions Despite USD Strength; Potential Breakout Above $2700
Monday, Oct 7, 2024 8:00 am ET
1min read 【Latest Gold Price and Recent Trends】
Gold surged to $2658 amid heightened Middle East tensions, led by Hezbollah's rocket attacks on Israel. Despite initial gains, prices reversed lower.
【Technical Analysis】
Gold is forming a triangle pattern as traders buy on dips despite strong USD. Key support at $2630 remains crucial, with a potential breakout above $2700 if tensions escalate.
【Market Sentiment and Economic Background】
Geopolitical risks, especially Israel-Iran conflicts, increase demand for safe havens. Strong US labor data reduced expectations for aggressive Fed easing, boosting the USD and pressuring gold. China's stimulus optimism also weighs on gold.
【Analyst Opinions】
FXLeaders noted buying interest at support levels, indicating resilience despite USD strength. UBS suggests a 5% allocation to gold as a hedge, emphasizing its role as a protective asset. High geopolitical risks could drive gold above $2700 by year-end.
【Market Sentiment and Economic Background】
Middle East tensions have intensified with Hezbollah's attacks on Israel, leading to panic and temporary flight cancellations by Iran. These geopolitical risks support safe-haven demand for gold.
【Analyst Opinions】
Gold analysts predict sustained demand due to geopolitical risks and strong central bank purchases. UBS raised its gold target to $2750 by year-end, recommending a 5% portfolio allocation to hedge against uncertainties.
Gold surged to $2658 amid heightened Middle East tensions, led by Hezbollah's rocket attacks on Israel. Despite initial gains, prices reversed lower.
【Technical Analysis】
Gold is forming a triangle pattern as traders buy on dips despite strong USD. Key support at $2630 remains crucial, with a potential breakout above $2700 if tensions escalate.
【Market Sentiment and Economic Background】
Geopolitical risks, especially Israel-Iran conflicts, increase demand for safe havens. Strong US labor data reduced expectations for aggressive Fed easing, boosting the USD and pressuring gold. China's stimulus optimism also weighs on gold.
【Analyst Opinions】
FXLeaders noted buying interest at support levels, indicating resilience despite USD strength. UBS suggests a 5% allocation to gold as a hedge, emphasizing its role as a protective asset. High geopolitical risks could drive gold above $2700 by year-end.
【Market Sentiment and Economic Background】
Middle East tensions have intensified with Hezbollah's attacks on Israel, leading to panic and temporary flight cancellations by Iran. These geopolitical risks support safe-haven demand for gold.
【Analyst Opinions】
Gold analysts predict sustained demand due to geopolitical risks and strong central bank purchases. UBS raised its gold target to $2750 by year-end, recommending a 5% portfolio allocation to hedge against uncertainties.