The move into Gaza territory was the largest incursion of the ongoing war but gold traders do not appear to be flooding back into the precious metal ahead of the weekend, or at least not yet. Over the last week four hostages have been released and Hamas now calls for a ceasefire to locate and gather hostages, the release of which will be contingent on a ceasefire.
Taking a look at the daily gold chart it is clear to see the slowdown in price appreciation around the $1985 level where a number of upper wicks signal a momentary reluctance to surge higher. Goldwill be largely directed by the ongoing conflict with the potential to rise once again if the conflict extends into a broader regional fight. Therefore the current market posture may prove to be short-lived.
Levels of note to the upside include the $2010, which appeared as resistance earlier this year around the banking turmoil, and the all-time high around $2081.80. Elevated US yields have had little effect in containing recent advances as the yellow metal proved its value as a safe haven asset. Support remains at $1937 which coincides with the 200 SMA.will remain resilient heading into next year.
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