Gold prices held hefty despite two-day losses as traders focused on US economic data and Middle East geopolitical conflicts.
On Wednesday, Gold futures for the December contract declined by 0.15% to $1,983.05, while spot gold rose by 0.5% to $1,972.21.
Furthermore, data shows the yellow metal surged about 9% in the last two weeks, hitting a five-month high of $1,997.90. According to analysts, if the Arabian region conflict escalates, gold’s price of $2,000 forecast is still on the traders’ cards.
However, some analysts noted that gold’s slump this week suggests diminished safe-haven appeal amid Middle East tensions’ normalization.
The market sees the US third-quarter gross domestic product (GDP) and personal consumption expenditures (PCE) price index to be released this week might affect the Federal Reserve’s interest rate stance.
On the other hand, the yellow metal might decline a bit as Europe’s economic troubles spared further losses. Germany’s recession signs and the United Kingdom’s (UK) business struggles raise concerns pre-Bank of England’s (BOE) decision.
Global diplomacy led by the US works to free 200 Israeli hostages held by Hamas, averting an imminent Israeli ground assault on Gaza.
Gold’s safe-haven role despite conflict left the dollar behind as commodity exchange futures surged from $1,800 to nearly $2,000 last Friday.
Gold Braces amid Triple-Top, Econ, Mideast Dilemma
Analysts closely monitor the gold market as it faces a possible ‘triple-top’ resistance to political and economic uncertainties.
Gold prices signal a triple-top formation, showing three peaks that flag an asset to shift from rally mode to sell-off.
More so, experienced commodity technicians suggest the yellow metal chart analysis might yield a surprising outcome. Unlike the typical bearish view of triple-tops, gold’s current trend suggests readiness for a quick breakout and continued bullish momentum.
However, geopolitical and economic uncertainty potentially impacts inflation, and interest rates boost gold’s current appeal.
Experts predict spot gold will swiftly surpass the $1,998 resistance zone, potentially reaching the $2,070-$2,080 benchmark. The rising dollar index restricted bullion gains, increasing the cost of gold for foreign buyers.
