- Gold price opened higher this week amid rising Israeli–Palestinian tensions.
- It broke a major bearish trend line with resistance near $1,850 on the 4-hour chart.
- Crude oil prices also soared and retested the $87.00 resistance zone.
- The VIX index saw a bearish reaction below the 17.00 level.
Gold Price Technical Analysis
Gold price remained well-bid above the $1,810 level. The price started a steady increase after Hamas militants marched into Israel on Saturday, bringing gunbattle for the first time in decades.
The 4-hour chart of XAU/USD indicates that the price gained pace above the $1,825 and $1,830 resistance levels. More importantly, the price opened with a gap higher this week and tested the $1,862 resistance.
The price also tested the 38.2% Fib retracement level of the downward move from the $1,947 swing high to the $1,810 low.
More Gains If Tensions Escalate?
Yesterday, the Israeli army bombarded the Gaza Strip. The attack reduced buildings to rubble and sent hundreds of people to hospitals. Commenting on the attack, Vladimir Putin blamed the US for the Israel-Gaza conflict.
If the war escalates further, it could push investors to the safe havens, including Gold. The price is now facing resistance near the $1,862 level.
An upside break above the $1,862 level could send the price soaring toward the $1,880 resistance or the 100 Simple Moving Average (red, 4 hours). It is close to the 50% Fib retracement level of the downward move from the $1,947 swing high to the $1,810 low.
The next major resistance is near the $1,900 level and the 200 Simple Moving Average (green, 4 hours), above which Gold could revisit the key $1,920 resistance zone.
On the downside, the price might find support near the $1,840 level. The next key support is near the gap area at $1,832. If the bulls fail to protect the $1,832 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,810 level.
Looking at crude oil prices, there was a strong move up from the $82 zone, but bears are facing hurdles near $87 and $88.
Economic Releases to Watch Today
- US Producer Price Index for Sep 2023 (YoY) – Forecast +2.3%, versus +2.2% previous.
- FOMC Meeting Minutes.