Gold prices surged as the market reacted to the escalating tensions in the Middle East. The end of the truce in the region could continue to fuel risk aversion and investors’ concerns.
As a result, the market broke above the 2050 dollars level and could keep growing ahead of the weekend. Gold may be able to reach peaks observed during March 2022 and August 2020.
The market could find support levels around the 2070-2075 dollar per ounce mark. The escalation has helped extend gold’s uptrend of the last two months as traders take into account changing expectations regarding monetary policy.
Traders have been betting on an end to the interest rate hiking cycle and possible rate cuts in the first half of next year, which could continue to support gold’s rise over the medium term.