As the Israel-Hamas conflict deepens, gold prices continue to move upwards. Meanwhile, the US Dollar consolidated, bouncing off the strong US Retail Sales data for September. ANZ and Commerzbank strategists share their latest outlook. On the technical front, upward signals are getting stronger.
ANZ: Gold prices benefit from haven flows
The gold price recovered with the demand following Hamas’ attack on Israel on October 7. The recent rise in yields reflects the tighter monetary situation, according to ANZ Bank strategists. Strategists say gold is benefiting from haven flows triggered by geopolitical tension. In this context, strategists make the following assessment:
Market expectations are shifting to the view that no further rate hikes are necessary as the recent rise in US Treasury yields points to tighter policy. Investment demand for gold has not yet recovered. However, strong central bank purchases and seasonal demand for physical gold may offset some of the investment sales.
Commerzbank: Conflicts in the Middle East support upside
Following the developments in the Middle East, gold prices have increased significantly recently. Like this, cryptokoin.comAs you follow from , it made up for its losses in late September/early October. According to Commerzbank strategists, a sharp increase in oil prices is likely again if the military conflict in the Middle East escalates or expands. In this regard, strategists share the following predictions:
Conflicts in the Middle East currently pose a significant upside risk. If the conflict spreads to other countries in the region, it is estimated that the gold price will initially benefit from its safe haven role. If the military conflict in the Middle East escalates or expands, there is likely to be another high rise in the price of Oil. This will increase the risk of persistently high inflation and may trigger further interest rate increases. Since interest rates have already been raised noticeably, they probably won’t rise as steeply as they did last year. However, this will definitely postpone expectations for a rate cut next year. This is what has been supporting the gold price lately.
Gold prices technical view: Markets are rallying again
Gold markets rose again in Wednesday’s trading session. technical analyst Christopher Lewis, He states that at this point it continues to rise much higher. The analyst explains what he sees in the technical picture of gold as follows.
The market will see a lot of “FOMO” entering the picture!
Gold rose significantly again in Wednesday’s trading session. CBecause 1,950 dollar rise above the levelsucceeded in may. The market will likely continue to see a lot of “FOMO” enter the picture. The market is currently breaking above the previous triangle. B.Therefore completely We reversed. At this point we need to pay close attention to the bond market and, of course, interest rates in America. We should also consider the geopolitical issues going on right now and what this could do for gold.
Gold is something people will run to for safety. After the last surge, it’s clear that this is part of what’s going on. After all, interest rates have risen over the past few days. However, gold prices also rose at the same time. It is possible for this situation to happen from time to time. So while there is generally a negative correlation between interest rates and gold, that doesn’t mean you can trade based solely on that negative correlation. After all, there is the possibility of more than one thing happening at the same time. It is clearly possible to see that this is the case now.
It is possible for gold to reach the $2,000 level
Below, the 200 Day EMA provides support for gold prices. This is also just below the last few candlesticks. So it all ties together quite nicely. If it falls below this level, the market is likely to go much lower. But that doesn’t seem to be the case right now. The size of the day’s candlestick indicates that we have plenty of momentum. But there will probably be a lot of noise along the way.
If it continues to rise further, it is possible for the market to reach the $2,000 level. This is, of course, a big, round, psychologically important number. It’s also an area that has shown a lot of resistance before. It’s possible that this could also be a situation where it becomes a nice goal. So keep this in mind. Either way, it looks like buyers are starting to regain momentum.
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