Given the heightened geopolitical tensions arising from the recent conflicts in Israel and Hamas, global investors have increasingly sought refuge in gold. Consequently, this precious metal, often seen as a safe-haven asset during uncertain times, surged robustly past resistance benchmarks set at $1,920 and $1,950, reflecting the market’s anxiety and quest for stability.
Delving into the 4-hour analysis of XAU/USD, it’s evident that gold has anchored itself beyond the $1,965 barrier, transcending both the 100 and 200 Simple Moving Averages.
In its recent bullish spree, gold flirted with the coveted $2,000 benchmark before taking a slight step back. This downward nudge took it beneath the $1,965 mark, coming close to the midpoint of its recent climb from a low of $1,908 to a peak of $1,997.
Interestingly, a discernible optimistic trend line has been shaping up, providing support around the $1,968 mark on the very same chart. Current market dynamics hint at the possibility of gold extending its upward trajectory, potentially surpassing the $1,980 threshold.
While the immediate ceiling is pegged around $1,995, the significant $2,000 barrier looms large. Should gold muster the strength to breach this, the path could lead straight to the next resistance set at $2,050. Beyond this, the spotlight would be on the formidable $2,080 milestone, with an eventual foray into the crucial $2,120 zone being a tantalizing prospect.
Conversely, on the lower spectrum, the $1,968 bracket could serve as a cushion. Beyond this, the $1,950 segment emerges as a pivotal support realm. If the market sentiment wavers and this level succumbs, we could witness a steeper descent, possibly touching the $1,930 mark.
Shifting focus to crude oil’s trajectory in the context of global energy markets and economic factors, a pronounced bearish sentiment, influenced by supply concerns and demand fluctuations, seems to have taken hold, firmly nudging prices beneath the significant $85 threshold, causing industry speculations.