Gold Strengthens, US-Iran Risks Remain a Trigger
Gold prices strengthened on Friday (February 20th), regaining ground above the psychological $5,000/oz level as demand for safe-haven assets increased. The main driver came from escalating US-Iran tensions after US President Donald Trump gave Iran a 10-15 day deadline to reach a nuclear deal—causing the market to re-price geopolitical risks as a short-term catalyst for precious metals.
In addition to geopolitical factors, market participants are also holding their breath ahead of the release of US PCE inflation data (the Fed's favorite indicator), which could shift interest rate expectations and the direction of the dollar/yields. If the data strengthens the prospect of policy easing, gold could potentially receive further support. However, if inflation is hotter than expected, a strengthening dollar and yields could restrain gold's rise. (alg)
The gold price at the time of this analysis was $5,012
- Buy if the price moves within $5,017
- Sell if the price moves within $5,005
Resistance 2: $5,035
Resistance 1: $5,023
Support 1: $4,999
Support 2: $4,987
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id