XAUUSD up after Powell or due to war?The price of gold has risen to nearly $1,980, reaching its highest level since July. This increase has been driven by escalating tensions between Gaza and Israel, despite the ongoing rise in US Treasury yields. Gold has surpassed significant technical indicators and is now aiming to breach the $1,988 threshold before potentially reaching $2,000. The 14-day RSI indicator suggests further gains before a possible correction. In the event of a price correction, support levels have been identified at $1,972 and $1,963. Additionally, the psychological level of $1,950 could pose a challenge to the bullish trend, with particular attention to the key 200-day DMA support, currently at $1,930. Geopolitical tensions have contributed to the increase in the price of gold, which is considered a safe haven. Furthermore, statements from Jerome Powell, the head of the Federal Reserve, have emphasized that the rise in US Treasury yields does not necessarily indicate future interest rate hikes or higher inflation.
The situation has been influenced by ongoing tensions between Gaza and Israel, with the possibility of a ground invasion into Gaza by the Israeli Defense Forces. Growing concerns regarding geopolitical tensions have pushed the price of gold higher, with an increase of over $30 in a single day. Currently, gold remains strong, with traders closely monitoring developments in Middle Eastern geopolitical tensions. This situation could further impact gold prices. Currently, my H4 bias is short, but due to geopolitical tensions, I do not rule out the possibility of gold returning to visit highs in the 2020 area, where we have a supply zone. At the moment, it is fluctuating between the 1920-2020 range. Please comment and leave a like to support our work. Greetings from Nicola, the CEO of Forex48 Trading Academy.
