Gold: Is It Too Soon to Call It a New Bull Market?

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Commodities Analysis by Investing.com (Damian Nowiszewski) covering: XAU/USD, Gold Futures, SPDR® Gold Shares, ProShares UltraShort Gold. Read Investing.com (Damian Nowiszewski)'s latest article on Investing.com

price is emblematic of its enduring status as a safe-haven asset, consistently bolstered by investor confidence. The catalyst behind this surge is the ongoing conflict in the Gaza Strip, which has escalated into a ground invasion by Israeli forces.

Notably, the backdrop of elevated interest rates and robust US Treasury bond yields does not favor bullish sentiment. With upbeat US economic data and slowing disinflation, the Fed's hawkish stance is likely to endure for the foreseeable future. However, this did not happen and we remained in consolidation, as in the medium and long term the Federal Reserve's monetary policy is the decisive factor.

Buyers encountered their first problems in the area of the psychological barrier of $2,000, where sellers' resistance is still evident.The recent strong downward reaction does not bode well for a potential breakout of the indicated level, which would open the way for an attack on the area around $2080 per ounce., we witnessed a bearish reaction from the yellow metal. Now, the first target near local support falls in the area of $1970 per ounce.

 

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