Gold prices have increased, driven by lower oil prices and ongoing geopolitical tensions.
Key Factors:
- Lower Oil Prices: The decline in oil prices, due to the relatively limited impact of the recent Israel-Iran conflict on global oil supply, has eased inflationary pressures, leading to expectations of lower interest rates.
- Geopolitical Tensions: Ongoing geopolitical tensions, including the conflict in the Middle East and the potential for increased global instability, have boosted gold’s safe-haven appeal.
- US Treasury Yields: Rising US Treasury yields could potentially cap gold’s upside, as higher yields make non-yielding assets like gold less attractive.
Technical Analysis:
- Upward Trend: Gold is currently in an uptrend, with potential for further gains.
- Resistance Level: The $2,758 level is a key resistance level.
- Support Level: The $2,708 level is a potential support level.