Peter Smith
Gold prices rose significantly, driven by safe-haven demand due to Middle East tensions and the Federal Reserve's dovish stance. December gold gained $17.10, reaching $2,490.10.
XAU Price Rises Amid Middle East Tensions
Gold prices surged in early U.S. trading on Thursday, with December gold increasing by $17.10 to $2,490.10. This rise in XAU, coupled with a modest increase in silver prices, is attributed to heightened Middle East tensions and a dovish lean by the Federal Reserve. September XAG also saw an uptick, gaining $0.187 to reach $29.125.
The geopolitical climate in the Middle East has intensified, following air strikes in Iran and Lebanon that resulted in the deaths of senior Hamas and Hezbollah officials. These strikes, widely attributed to Israel, have led to a surge in crude oil prices and increased safe-haven demand for precious metals like gold and silver.
Market Reactions and Upcoming Economic Reports
Asian and European stock indexes showed mixed results overnight, while U.S. stock indexes are set for higher openings, continuing a rebound from last week's selling pressure. Traders are also looking forward to Friday morning's U.S. monthly jobs report for July, with non-farm payrolls expected to rise by 185,000, down from June's increase of 206,000.
Technically, December XAU bulls hold a solid near-term technical advantage. Their next target is to close above the resistance level at the contract high of $2,537.70, while bears aim to push prices below the $2,400.00 support level. Current resistance is noted at $2,502.80 and then $2,516.60, with support at $2,474.00 and $2,450.00.
In contrast, September XAG futures bears maintain a slight near-term technical advantage, with prices still in a downtrend on the daily bar chart. Silver bulls aim to close above the $30.00 resistance level, while bears target a decline below the July low of $27.45. Immediate resistance for XAG is at $29.50 and then $30.00, with support at Wednesday's low of $28.39 and then $28.00.
Conclusion
By staying informed on these developments and market trends, investors can better navigate the complexities of the precious metals market and make more informed decisions.
Peter Smith
