🥇 Gold climbs above $1,950 per ounce on Middle East tensions
Gold as well as silver are posting solid gains today. Jump comes even as US yields are slightly higher on the day and can be best explained with a flight to safety amid Middle East tensions. An overnight explosion at a hospital in Gaza Strip resulted in hundreds of deaths with Israel and Hamas blaming each other for the event. Leaders of the Arab countries condemned Israel as responsible for the blast, with Iran calling for an oil embargo and other sanctions on the country. Israel's total siege of Gaza Strip risks causing a humanitarian catastrophe and various Islamist militant groups in the region hinted they may join the fight if it is not lifted, sparking fears of conflict's spillover across the region.
Taking a look at GOLD chart at D1 interval, we can see that the precious metal has been on the rise since the Israel-Hamas war broke out a week ago. Gold bounced off the $1,810 per ounce support zone, which coincided with the lower limit of the bearish channel, and has gained around 8% since. Price jumped above the 200-session moving average (purple line) as well as $1,950 resistance zone today and climbed to the highest level since the turn of July and August 2023. Solid gains can also be spotted on SILVER market (+1.4%).
Source: xStation5
