- Gold prices have risen significantly due to escalating geopolitical tensions, with a notable increase since the Gaza City hospital blast.
- Analyzing the gold market’s trajectory has become more challenging, and it’s essential to consider broader geopolitical context and potential upside targets.
Where does gold go if the Gaza war escalates and are downside targets for gold pointless to think about right now? Perhaps it is prudent to think about some short-term retracements, but it does appear that the war will escalate or at least tensions remain heightened for quite some time, which is bullish for gold.
The latest event that could escalate the Gaza war is the blast at the Al-Ahli hospital in Gaza City that is said to have killed 500 people. Initially attributed to Israel, it is now looking more likely that it was caused by a rocket misfired from within Gaza. This was echo by U.S. President Joe Biden during his visit to Tel Aviv on Wednesday where he also pledged U.S. solidarity with Israel.
Gold has already risen by more than $120 since the October 7th attack, and around $80 since last Friday. RSI is above the midpoint for most timeframes, but this indicator’s accuracy might be compromised considering the wider geopolitical context.
$1,960 is the obvious upside target for XAU/USD to clear, and then we might want to simply look at physiological levels rather than technical levels considering the unprecedented nature of the events that might be driving the gold price right now.
