Middle East Conflict Supports Gold Above US$4,100
Newsmaker.id - The price of gold, or XAU/USD, maintained its positive trend on Wednesday (July 22nd). The precious metal traded around US$4,100 per troy ounce, not far from the two-week high of US$4,112.70 reached in the previous trading session. The US gold contract for August delivery also strengthened by around 1% to US$4,116.90 per troy ounce.
Gold's gains were driven by technical buying after prices managed to hold above the psychological level of US$4,000. Tensions in the Middle East have also increased demand for gold as a safe-haven asset, particularly following the US-Iran conflict and the Houthi group's threats to disrupt tanker shipping lanes in the Red Sea region.
However, gold's gains were limited by the strengthening US dollar and high US government bond yields. The dollar index hovered around a one-week high, while the 10-year US Treasury yield hovered around 4.628%. A high dollar and yields typically reduce the appeal of gold because the precious metal does not provide a yield.
Gold price at the time of this analysis: $4,119
- Buy if the price moves to $4,115
- Sell if the price moves to $4,125
Resistance 2: $4,150
Resistance 1: $4,133
Support 1: $4,115
Support 2: $4,105
Note: This article is analytical and not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
