Gold Strengthens Amid Middle East Escalation
Gold strengthened on Wednesday (March 4th) as the market returned to safe-haven assets amid the escalating Middle East conflict (the US-Israel attack on Iran and the resulting retaliatory response that has escalated regional tensions). This triggered hedging flows, causing spot gold to rise by around 1% and recover after experiencing sharp pressure in the previous session.
On the other hand, gold's support remains "held back" by macro factors: surging energy prices increase inflation risks, which makes expectations of a delayed or more cautious Fed interest rate cut—this typically lifts yields and provides a headwind for gold. However, the combination of geopolitics and portfolio diversification continues to maintain demand for bullion, so today's gold rally is driven more by risk-off factors than purely interest rate factors.
The gold price at the time of this analysis's release was at $5,164.
- Buy if the price moves above $5,169.
- Sell if the price moves below $5,158.
Resistance 2: $5,186.
Resistance 1: $5,175.
Support 1: $5,153.
Support 2: $5,142.
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions. (alg)
Source: Newsmaker.id