Gold Price Hold Steady Despite Easing Middle East Risk

Fundamental Analysis

* Gold Resillience: Gold prices trimmed earlier losses and held steady despite reduced concerns about a larger conflict impacting safe-haven demand. Tensions in the Middle East eased after Israel refrained from targeting Iran’s oil and nuclear facilities in a recent strike, which saw Iranian leaders downplay its significance, despite Tehran’s threat of retaliation. Still, gold demand remains resilient, driven by uncertainty surrounding the upcoming U.S. presidential election, which may influence future U.S. economic policy. Additionally, central bank purchases and growing interest from investors have buoyed the metal’s price. According to the World Gold Council, central banks have collectively acquired over 1,000 tonnes of gold annually in the past two years, with China leading in efforts to increase its reserves.

Technical Analysis

* Technical Breakout: Gold price was traded higher following prior rebound from the support level 2725.00. MACD which illustrate bullish bias signal with the formation of golden cross suggest the commodity to likely further extend its trend.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 2775.00. Conversely, a potential reversal is also to be expected and the price could head back towards 2725.00.

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Potential Risks

Looking ahead, investors will turn their attention to key upcoming U.S. data, including the ADP Non-Farm Employment Change, GDP, Core PCE Price Index, and Non-Farm Payroll.

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Monitoring

Stay updated on US data, Middle East development, 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.