Gold (XAU/USD) daily chart
The ongoing violence in the Israel-Hamas conflict is still making for some uneasy tones in markets, in particular for commodities as the uncertainty lingers on. The latest is an Israeli strike on the Al-Ahli Baptist Hospital in Gaza, which has killed at least 500 people – many of which are women and children.
While FX, bonds, and equities are looking to move on, commodities are still very much caught in a bind. Oil is up another 2% today while gold is up 0.7% to $1,937 and seeking a break back above its 100 (red line) and 200-day (blue line) moving averages.
That will mark a key technical break for gold buyers, reversing the steep downside momentum from the end of last month to early October.
Now, a lot of the price momentum still depends on developments in the Middle East and so I’d be wary about chasing a move to retest the June and July highs near $1,980. But as far as the technical changes are showing, it is not siding with sellers if gold price can keep a break above the key technical levels noted above this week.