Since the Israel-Hamas conflict escalated earlier this month, gold and oil have been the two assets that are arguably impacted the most. And heading into every weekend since, we have seen both commodities gain ground only to fall back again on the following Monday. And with today’s decline, they look set for a third straight fall on the opening day of the new week.
Gold in particular is an interesting spot to watch after an attempted break above $2,000 on Friday. It is now down 0.6% to $1,993 and that could invalidate the breakout and put pressure back on the downside.
Gold (XAU/USD) daily chart
The Israel-Hamas conflict continues to be mostly centered around Gaza only and that is perhaps a cause for relief in broader markets. Equities are catching a bid today and that is translating elsewhere too, as we see in the price action in the commodities space.
Meanwhile, oil is down over 1% today tying in with a slight opening gap lower although price action in WTI crude continues to hold around $82 and $90 for now:
WTI crude oil daily chart