Gold prices rose to $2,380 in Thursday’s early American trading session after falling on Wednesday. The increase in gold’s value comes as worries grow that tensions in the Middle East could get worse, especially if Israel responds strongly to Iran.
Israel’s Prime Minister Benjamin Netanyahu said that his country will do whatever it takes to protect itself, according to The Times. This statement followed his talks with foreign ministers from the United Kingdom and Germany.
Despite the rise in US Treasury bond yields, which are influenced by the Federal Reserve’s interest rate plans, gold’s recovery hasn’t been affected. The yield on the 10-year US bond went up to 4.64%, aiming to go back above its five-month high of 4.70%. Generally, when yields on bonds go down, it makes it less expensive to hold onto assets like gold, which don’t pay interest.
Market Digest: Gold Price Holds Strong Amidst Dollar Rebound
Gold prices bounced back from most of their losses on Wednesday and climbed to $2,380 as investors stayed concerned about tensions in the world. Traders are still keen on buying gold because they worry that Israel might strike back after Iran attacked them with hundreds of drones and missiles.
Even though other big countries might delay cutting their interest rates because prices are going up, the US Dollar went up again. The US Dollar Index, which shows how the dollar is doing compared to other currencies, went up after going down to 105.75.
People are still interested in the US Dollar because the Federal Reserve, which is in charge of the US’s money, thinks it’s better to keep interest rates higher for a while until they’re sure that prices will stay where they want them to.
In a meeting on Thursday, the president of the New York Federal Reserve said they might not need to cut interest rates soon and that they might even raise them if the data suggests they should.
On Wednesday, the president of the Cleveland Federal Reserve also said that they should keep things strict with money for now. She thinks that eventually, they’ll be able to lower interest rates and make things normal again, but they shouldn’t rush it.
As for the latest numbers on people claiming jobless benefits, the US Department of Labor said that the number of new claims for benefits was about the same as last week, at 212,000, which is a bit lower than what people thought it would be at 215,000.
Gold Price Technical Analysis: Targeting $2,400 Recovery
Gold prices went up to $2,380 during Thursday’s trading session in London, after going down a bit on Wednesday. The price of gold has been staying within the range of $2,350 to $2,400 for the past two trading sessions. However, the increase in gold’s value is limited because the momentum indicators are starting to cool down after showing that gold was being bought a lot. The 14-period Relative Strength Index (RSI) on the daily chart went down a bit after reaching a high point around 85.00. But overall, there’s still a good demand for gold, as the RSI is still in the range that suggests gold prices could go up more, which is between 60.00 and 80.00.
If gold prices go down, the low point reached on April 5, which is around $2,268, and the highest point reached on March 21, which is around $2,223, will be important levels of support.
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