Market Nerves Heightened by Geopolitical Uncertainty
The recent tensions between Israel and Iran are part of the ongoing conflicts in the Middle East. Iran retaliated after a targeted strike by Israel killed two senior members of Iran’s Islamic Revolutionary Guard Corps. Many representatives at the United Nations have called for calm. Israel has announced its plans to respond to the drone attacks, which has kept gold prices up and put pressure on major stock market indices. This, along with the expectation of higher interest rates for a longer period, has affected the markets. Gold prices and volatility surged initially but eased after Iran indicated the matter was settled. The possibility of a broader conflict between two powerful nations in the Middle East is seen as a risk to market sentiment. Investors are turning to traditional safe haven assets like the US dollar and gold, which remain in demand.Additionally, declines in the stock market increase the attractiveness of gold as an investment option.
Gold Prices Stay High as Positive Outlook Continues
Gold has been going up a lot since February, especially after a special pattern called the ‘morning star’ appeared. Even though there’s news that the Fed might not lower interest rates soon because the US economy is doing well, gold prices still went up a lot. On Friday, they even reached a new record high of around $2430 before going down a bit and finishing the day lower. The market is still showing signs that it’s been bought a lot, which happens sometimes when prices go up too fast.
If things keep going well, we might see gold reach its highest price ever again. This could happen as long as the price stays above a certain level that’s been calculated from past patterns. If the price were to drop significantly, it would need to test its previous highest price of $2222 before we consider a big change in the trend. But for now, things still look good for gold going up.
Gold (XAU/USD) Daily Chart
