Analysis Of The XAU/USD Pair: Gold Hits Its Highest Since May 2023

By RoboForex Analytical Department

The sudden outbreak of war between Israel and the Palestinian militant group HAMAS has come as a complete surprise to investors. Against the backdrop of geopolitical risks, they are turning to gold as a safe-haven asset. It is uncertain whether this conflict will spread to other Middle Eastern countries in the immediate future. If it does, the region could plunge into the chaos of long-forgotten Arab-Israeli wars.

Indirectly, this situation may affect the future policies of the US Federal Reserve. The regulator might be cautious about further interest rate hikes and monetary policy tightening. Even the inflationary pressure arising from surging oil prices may not sway the Fed's future decisions. This may further bolter investor demand for gold, potentially giving rise to a new long-term upward trend in precious metals.

Technical Analysis Of The XAU/USD Currency Pair

On the D1 timeframe for the XAU/USD pair, the resistance level is at 1929.14, with support at 1813.28. Until this channel is breached on either side, there is no sign of a global shift in the gold market trend.

On the H1 timeframe for the XAU/USD pair, if prices consolidate above the 1857.58 mark, further growth to the resistance level on D1 is likely. The level of 1857.58 can serve as a reference point for long positions. Sales become relevant from 1855, with a target set at 1813.28. The possibility of breaking the 1813.28 support level is quite likely, in which case the target could drop to 1785.13.

Disclaimer

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.