The price of gold remained firm ahead of the weekend, as it moved up 0.18% after hitting a record high on Wednesday at $2,758. Elevated tensions in the Middle East and uncertainty around US elections seemingly kept traders flocking to the safe-haven metal. The XAU/USD currency cross was seen trading at around $2,740 at the time of writing.Geopolitics pushed aside US economic data as the main driver for price action. Hostilities continued on Friday between Israel and Hezbollah at around the border of Israel and Lebanon. Israeli officials said that around 45 missiles were launched by the terrorist organization.Meanwhile, Israel attacked eastern Lebanon, leading to the closure of the Al-Qaa and the Masnaa border crossings via Lebanese officials and the United Nations. Israel stated they targeted Hezbollah’s infrastructure. According to CNN, the US Secretary of State Anthony Blinken met with Middle East leaders in London, trying to end the war in Gaza.Aside from this, traders were also eyeing US elections. Deutsche Bank Analyst Jim Reid wrote, “An Emerson poll of several swing states yesterday had Trump very marginally ahead, including a 1pt lead in Pennsylvania and Wisconsin, and a 2pt lead in North Carolina. But given the margin of error is just over three points for those polls, this remains a very tight race, as reflected in various prediction markets and forecast models.”Recently, US Treasury yields recovered after diving to daily lows and turned positive, capping bullion prices. Also, the greenback appeared to be staging a recovery as the US Dollar Index (DXY), which tracks the dollar’s value against a basket of six currencies, moved up 0.29% around the 104.32 level.Data-wise, the US economic docket revealed that US Durable Goods Orders dropped in September. At the same time, the University of Michigan (UoM) revealed that Consumer Sentiment amongst Americans improved in October.
Market Movers: The Price of Gold Remained Firm Despite Higher US Yields
XAU/USD Technical Outlook: Gold Price Rose Above $2,740
The price of gold remained upwardly-biased on Friday, though it consolidated at around $2,708 to $2,758 during the last four trading sessions, as it was unable to break through the range.Momentum indicators suggested that buyers were gaining strength, as the Relative Strength Index (RSI) reversed its decline and moved upwards into bullish territory.If the XAU/USD cross could clear the $2,750 mark in the coming days, the next resistance level would be the year-to-date high at $2,758. Once surpassed, the next target would be the $2,800 level.On the downside, if bullion prices were to fall below the Oct. 23 low of $2,708, the next support would lie at the 38.2% Fibonacci Retracement level at $2,699, followed by the 50% and 61.8% Fibonacci Retracement levels at $2,681 and $2,662, respectively.(Click on image to enlarge) More By This Author:
