Wed. Jun 19th, 2024

Gold price dips from fresh highs near $2,430 as investors don’t see Middle East tensions escalating further. Gold XAU/USD Price Today $2324 New Week Down Trand

Gold Prices (XAU/USD) Climbs To A Record High Near $2430 During The Early Asian Session On Friday.Gold Prices (XAU/USD) Climbs To A Record High Near $2430 During The Early Asian Session On Friday.

Gold price drops as investors see Isran-Israel tensions stalling

Gold price retreats from fresh all-time highs near $2,430 as investors see Iran’s air strike on the Israeli state only as a retaliation to the attack on their embassy in Syria near Damascus.

Tensions between Iran and Israel are not expected to escalate further as Tehran said, “the matter deemed to be closed.” However, should the Israeli regime make another mistake, Iran’s response will be considerably more severe, the Wall Street Journal reported.

[4/15, 7:58 PM] s m: Gold price dips from fresh highs near $2,430 as investors don’t see Middle East tensions escalating further.

US bond yields soar as the Fed seems to initiate the rate cut cycle from September.

The US Dollar exhibits strength ahead of the monthly United States Retail Sales data for March.

Gold price (XAU/USD) struggles for a firm footing near $2,350 in Monday’s European session after posting hefty losses on Friday.

The precious metal loses shine in the very-short term as investors expect that geopolitical tensions will not escalate further.

United States President Joe Biden said that his nation will not support the counterattack from Israel on Iran.

Receding Federal Reserve (Fed) rate cut bets for the June and July meetings, combined with less fears of further escalating Iran-Israel tensions, have put some pressure on Gold.

The 10-year US Treasury yields rally to 4.55% as Fed policymakers support keeping interest rates restrictive before they get convinced that inflation will return to the required rate of 2%.

Higher bond yields weigh on the Gold price as they increase the opportunity cost of holding an investment in it.

The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, prints a fresh five-month high near 106.00 ahead of the monthly Retail Sales data for March, which will be published at 12:30 GMT.

Robust spending by US households remains a major catalyst to higher inflation, allowing businesses to charge higher from consumers.

The monthly Retail Sales are expected to have grown modestly by 0.3% compared to the prior reading of 0.6%.

Technical Analysis: Gold edges down from fresh highs near $2,430

Gold price corrects from new all-time highs formed around $2,430. The precious metal faces pressure as momentum oscillators are overheated.

The 14-period Relative Strength Index (RSI) drops slightly after peaking around 85.00. The near-term demand is intact as the RSI remains in the bullish range of 60.00-80.00.

However, momentum oscillators are cooling down after turning extremely overbought.

On the downside, April 5 low near $2,268 and March 21 high at $2,223 will be major support areas for the Gold price.

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