GOLD soars, attention to the Middle East and dataAffected by tensions in the Middle East and falling US bond yields, demand for safe havens increased and gold prices achieved the target increase at 2,672 USD. Note to readers in the publication issue Before gold fake correction,. Gold prices are still hovering below recent record highs after the Fed Chairman hinted at smaller interest rate cuts in the future.
As fears of an all-out war in the Middle East increased after Iran launched ballistic missiles at Israel, gold prices rose due to safe-haven demand.
Iran fired multiple ballistic missiles at Israel on Tuesday in retaliation for Israel's actions against its Lebanese ally Hezbollah.
Salami, commander of Iran's Islamic Revolutionary Guard Corps, said Iran fired 200 missiles at Israel in an operation Tuesday night local time.
• White House national security adviser Jake Sullivan called Iran's missile attacks a “significant escalation,” but said they were ultimately “defeated and ineffective,” in part because the US military helped shoot down several incoming missiles.
• Sullivan emphasized that the attack will have consequences and that the United States is consulting with Israel on next steps or possible responses.
Israeli Prime Minister Benjamin Netanyahu said that Iran made a big mistake and will pay the price.
This series of launches was the largest missile attack on Israel in Iran's history.
Iran's Revolutionary Guards claimed that 90% of their missiles successfully hit targets in Israel. As of now, no casualties have been officially reported.
Israel's emergency services have lifted all restrictions and people in Tel Aviv have emerged from bomb shelters and returned to the streets.
Iran's president says he does not want war but will resolutely fight any threat from Israel.
Lower interest rates reduce the opportunity cost of holding gold, which is considered a safe haven asset in times of economic and political turmoil. Gold posted its best quarterly gain since 2020 last quarter after the Federal Reserve began its rate-cutting cycle in September with a 50 basis point cut.
Major banks expect gold to continue its record price increase in 2025, due to a resurgence of large capital flows into exchange-traded funds (ETFs) and expectations of further interest rate cuts from major banks. major central banks, including the Federal Reserve.
Gold has risen nearly $577 year to date, or more than 28%, which would be the largest annual gain since 2010.
Goldman Sachs raised its gold price forecast in early 2025 to $2,900/ounce from $2,700/ounce, citing a gradual increase in ETF inflows as Western and Chinese interest rates cut and central banks increased strong buy.
Next, the market will pay attention to this week's US labor force data, as well as speeches from Federal Reserve officials, for further guidance on the US's policy stance.
Analysis of technical prospects for OANDA:XAUUSD
On the daily chart, gold recovered and reached its target gain at $2,672 yesterday. Temporarily, the upward momentum of gold prices is also limited by the above technical level.
Although the upward momentum is limited, the uptrend still dominates the daily technical chart. Once the $2,672 level is broken, gold will be eligible to increase further with a target level at an all-time peak established. Previously at 2,685USD.
There is no possibility of any significant price decline, as long as gold remains within the price channel it will remain bullish in the short term. Price drops that do not break below the price channel should only be considered short-term corrections.
During the day, the bullish outlook for gold prices will be noticed by the following technical levels.
Support: 2,645 – 2,634USD
Resistance: 2,672 – 2,685USD
SELL XAUUSD PRICE 2701 - 2699⚡️
↠↠ Stoploss 2705
→Take Profit 1 2694
↨
→Take Profit 2 2689
BUY XAUUSD PRICE 2619 - 2621⚡️
↠↠ Stoploss 2615
→Take Profit 1 2626
↨
→Take Profit 2 2631
