XAU/USD dips below $2000 as Middle East conflict fears ease – Crypto News – Crypto News
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XAU/USD to added credence to bearish potential on a drop under $1,750 XAU/USD to added credence to bearish potential on a drop under $1,750

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XAU/USD dips below $2000 as Middle East conflict fears ease – Crypto News

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  • Gold price falls to $1997.60, down 0.42%, after reaching a daily high of $2006.77.
  • Geopolitical risks, particularly the Middle East conflict, continue to drive gold prices.
  • Analyst Jim Wyckoff remains bullish on gold, citing potential for worsening conflict and new all-time highs.

Gold price (XAU/USD) fell below the $2000 mark late in the New York session, registering losses of 0.42% as market participants trimmed some of last Friday’s gains amid fears the conflict in the Middle East could spread in the region. XAU/USD is trading at $1997.60 after hitting a daily high of $2006.77.

XAU/USD registers losses as market participants trim gains amid shifting geopolitical risks

Geopolitical risks continue to be the main driver of Gold prices. Last Friday’s jump above the $2000.00 mark was sponsored by Israel launching its ground offensive against Hamas as it entered the Gaza Strip. Consequently, traders seeking safety witnessed a flight to safe-haven assets as XAU/USD rallied from   $1980.00 to $2000.00.

Given that the Israel offensive hasn’t been as strong as expected, woes faded as Gold prices dipped below the $2000 mark. Despite all that, Jim Wyckoff, analyst at Kitco, noted that “the Middle East conflict is keeping a floor under gold and silver markets. I remain bullish on gold, the conflict will get worse before it gets better, gold can hit all-time high in the near term.”

US Treasury bond yields had continued to rise as the US bond sell-off extended. The US 10-year benchmark note rate is 4.88%, up five basis points, a headwind for XAU/USD prices. In the meantime, the Greenback remains weak, even though US Treasury bond yields climbed, as the US Dollar Index lost 0.42% and sits at 106.13.

Market participants’ focus shifted to the US Federal Reserve’s (Fed) monetary policy. Powell and Co. are expected to hold rates unchanged but would likely keep their options open for higher interest rates. Any dovish tilts could underpin XAU/USD prices toward higher levels.

XAU/USD Price Analysis: Technical outlook

Gold price remains upward biased but at the brisk of consolidating at around the $1990-$2000 area. A daily close below the October 20 high of $1997.16 could pave the way for testing the $1990 mark. Once cleared, XAU/USD could extend its fall toward the October 24 swing low of $1953.69. Conversely, a bullish continuation is seen above $2000, with the first resistance emerging at $2009.42, followed by $2050.

 

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