- The US dollar recovered at the beginning of this week’s trading.
- This did not prevent the price of gold (XAU/USD) from maintaining the gains of investors’ demand for it as a safe haven, and it continued to trade yesterday in the range between the level of 1908 dollars and the level of 1927 dollars per ounce.
- The price of gold (XAU/USD) jumped during the Friday session at the highest daily performance since last March.
Data in Focus This Week
In addition to global geopolitical tensions, led by anxiety in the Middle East region, traders are also closely monitoring the latest economic data and awaiting a crowded lineup of Fed speakers for clues on the policy outlook. Key updates on the state of the global economy due this week include Chinese growth figures and inflation readings in Japan, the UK and the Eurozone. Meanwhile, Federal Reserve Chairman Jerome Powell will be among those scheduled to speak after a series of stronger-than-expected data readings.
At the beginning of this week's trading, global stock market indices fell and oil prices were mixed as investors awaited today the expected invasion by Israel in the Gaza Strip. Accordingly, S&P 500 futures rose by 0.2%, while the Dow Jones Industrial Average rose by 0.3%. Germany's DAX index fell 0.1% to 15,168.16 and the CAC 40 index in Paris fell less than 0.1% to 6,999.82. The British FTSE 100 index reversed its early losses, gaining 0.3% to 7,624.99 points.
Israeli forces, backed by an increased deployment of US warships in the region and the call-up of some 360,000 reserve soldiers, have been stationed along the Gaza border and conducted training exercises in preparation for what Israel said would be a large-scale campaign to dismantle Hamas. As a result, before the expected invasion more than a million people fled their homes in the besieged sector last week. The conflict had shaken oil markets, adding to the uncertainty that was already clouding the global economic outlook. Although the Gaza region is not a major oil producer, the fear is that the violence will spill over into the politics surrounding the crude oil market and ultimately lead to disruptions in oil flow, with wide-ranging repercussions on many industries.
Gold Price Forecast Today
As I mentioned before, geopolitical tensions will continue to support bulls in moving the gold price towards stronger and closer upward levels at present, $1945 and $1970 respectively. At the latter level, technical indicators are rushing towards strong purchasing saturation levels, while paving the way for moving towards historic resistance at $2000 again. But on the other hand, caution must be taken, as the US dollar is on an important date this week, as there will be important economic releases and there will be many statements by US Federal Reserve officials, led by Jerome Powell, which will have a strong reaction to the future of the US interest rate hike. Confirmation of the data results and officials’ statements about tightening the bank’s policy may weaken gold’s gains, and sometimes it may be exposed to selling operations, and if they occur, the support levels closest to the current performance will be 1,900 and 1,883 dollars, respectively.
The continuation of geopolitical tensions will support investors’ interest in buying gold from every falling level.
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