Steadily rising, the gold price regains ground towards its multi-month high and shifts focus towards the US GDP
Gold Price Continues to Rise Amid Geopolitical Concerns
Positive Momentum for Gold Price
The price of gold (XAU/USD) has been gaining momentum for the second day in a row. It is climbing higher during the first half of the European session. This is good news for investors who have been keeping an eye on the precious metal. Gold is considered a safe-haven asset, and its price has been supported by the ongoing conflict between Israel and Hamas. Despite the rise in US Treasury bond yields and a stronger US Dollar, gold remains well supported.
Important Economic Releases
Investors are now waiting for important economic releases from the United States. These releases will give clues about the future interest rate hikes by the Federal Reserve (Fed). The US economic docket for Thursday includes the Advance Q3 GDP print, Durable Goods Orders, Weekly Initial Jobless Claims, and Pending Home Sales data. These releases, along with a scheduled speech by Fed Governor Christopher Waller and US bond yields, will influence the price of the US Dollar (USD) and provide trading opportunities for XAU/USD traders.
Despite the rise in US Treasury bond yields and the buying interest in the US Dollar, geopolitical concerns continue to support the price of gold. Israel has intensified its bombing on Hamas targets in Gaza and is prepared for a ground invasion. This increases the risk of the conflict spreading to the wider Middle East region.
From a technical perspective, there is fresh buying near the $1,953-1,952 resistance level, which has now turned into support. This indicates a bullish trend for gold. However, the Relative Strength Index (RSI) on the daily chart is close to entering overbought territory. This suggests that the price of gold may face strong resistance near the psychological level of $2,000. If the price manages to break through this level, it could continue to rise towards the next relevant hurdle near the $2,022 area.
On the downside, the immediate support level is around $1,980, followed by the $1,971-1,970 region. If there is further selling pressure, the price may fall back to the weekly low of $1,953-1,952. This level is a strong horizontal resistance and will be a key point to watch. If the price breaks below this level, it could fall further towards the 200-day Simple Moving Average (SMA) at around $1,932-1,931.