Gold Surges on Middle East Tensions and Powell's Speech

The price of Gold (XAU/USD) saw a significant surge as Middle East tensions continued to escalate, with Israeli troops preparing to enter the Gaza strip to dismantle Hamas. This rise was further fueled by Federal Reserve (Fed) Chair Jerome Powell's endorsement of a stable interest rate policy in his recent speech. While U.S. President Joe Biden promised humanitarian aid for Gaza civilians, the potential for direct Iranian intervention in the conflict raised concerns about the outbreak of a broader Middle East regional war. Powell's acknowledgment of the impact of multi-year high U.S. Treasury yields on spending and investment also contributed to Gold's ascent.

Based on technical analysis, XAU/USD is moving higher on Friday and able to reach the upper band of the Bollinger Bands. Currently, the price of gold is moving lower and reaching the middle band suggesting a possible continuation movement to reach the upper band. The Relative Strength Index (RSI) currently registers at 60, indicating a bullish bias for the XAU/USD pair.

Resistance: $1,985, $2,002
Support: $1,959, $1,947