Gold extended its uptrend and reached a near three-month high.
The gold price (XAUUSD) rises for the fourth consecutive day on Friday. Marking the fourth day of a positive trend in the previous five, and reaches a near three-month high, at $1,982. During the Asian session. Concerns about geopolitical tensions in the Middle East continue to drive investors to conventional safe-haven assets. Boosting demand for gold. Aside from that, there is a growing consensus that the Federal Reserve (Fed) Another reason supporting the non-yielding yellow metal is the Fed’s decision to hold interest rates constant for the second consecutive month in November.
Rising US bond rates and a stronger USD may limit gains in the face of an overbought RSI.
This week’s persistent breach through the critical 200-day Simple Moving Average (SMA) inspires some technical buying and gives the Gold price a lift. Bulls, however, appear unmoved by rising US Treasury bond rates and predictions on another Fed rate rise before the end of the year. Which helps resuscitate the US Dollar (USD). But with little impact on the current upward trend. However, overbought situations on hourly charts should be considered before initiating new bullish wagers on the XAUUSD and preparing for additional appreciation.
Daily Market Movers: Gold continues to rise When Middle East tensions increase demand for safe haven assets.
Concerns that the Israel-Hamas conflict would spread to other Middle Eastern countries. And have an impact on the global economy continue to boost the safe-haven gold price.
On Thursday, Israel pummeled the Gaza Strip with airstrikes. Appearing to be moving closer to a full-scale invasion of the Hamas-ruled beachfront enclave.
Israeli troops and equipment gathered near the Gaza border. As Israeli rockets hit targets in Lebanon and Syria.
The intensification of the conflict has also had a direct impact on Egypt, with Israel frequently hitting the Rafah border crossing between Egypt and Gaza.
In light of the economy’s resilience and labor market conditions. Federal Reserve Chairman Jerome Powell stated. That future interest rate rises may be justified. Market scarcity.
On Thursday, the benchmark 10-year US Treasury bond yield reached a new 16-year high. Assisting the US Dollar in attracting some dip-buying on Friday.
High US bond rates, a small USD increase, and overbought circumstances on hourly charts may limit additional gains for the XAUUSD.
