Gold surging as geopolitical tensions rise in the Middle EastGold prices surged to nearly a two month high on Friday driven by escalating geopolitical tensions in the Middle East. Spot gold rose 1.3% to $3,427.36 per ounce. This marks a gain of over 3.5% for the week.
The rally was fueled by Israel's preemptive strike on Iran's military and nuclear facilities, intensifying regional instability. The conflict has shifted investor focus from trade negotiations to safer assets like gold.
Additionally, weaker U.S. economic data, including jobless claims at an eight month high and subdued inflation, have increased expectations of a Federal Reserve interest rate cut, further boosting gold's appeal.
Technically, gold has established a subsequent move towards challenging the all time peak, around $3,500 psychological mark. Top end of the falling flag channel at $3,300.00 provided a strong support and reversal as the price continues its short term bullish trending channel.
On the contrary, some follow-through selling below the $3,385 region, however, should pave the way for additional losses towards the $3,355 intermediate support.
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