Gold prices rise on safe-haven demand amid Middle East crisis

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(Kitco News) – Gold prices are significantly higher in early trading Monday, following Hamas’s surprise attack on Israel over the weekend. The demand for safe haven comes as the world has recently seen an unexpected major geopolitical shock that has spooked traders and investors. In December, gold was up by $18.40 at $1,863.40 and silver was up by $0.047 at $21.77 in December.

Asian and European stocks were mostly lower overnight. US stock indices are tipped to open lower when the New York day session begins. The market is jittery after Hamas attacked Israel over the weekend, killing hundreds of civilians and taking hostages. Israel responded strongly and declared war on Hamas. This is the largest incident of violence seen in Israel in 50 years. The risk aversion to starting the trading week is too high, as the implications of the weekend attack by Hamas are huge politically and economically. America is increasing its military presence in the Middle East region.

The major Middle East conflict is likely to have an impact on major economies in the coming months, including central bank policies. There is also speculation that Israel’s war with Hamas may also affect the process of selecting the new Speaker of the US Congress and the House of Representatives.

The US government is closed on Monday for a federal holiday, so the US Treasury market is closed. However, most markets are open today, including the US Treasury futures markets.

The US dollar and US Treasuries are also seeing “flight-to-quality” buying amid the geopolitical crisis. Nymex crude oil prices have risen sharply and are trading around $85.50 per barrel. The yield on the benchmark US Treasury 10-year note yield is currently sitting at 4.795%.

US economic data to be released on Monday also includes the Employment Trends Index.

24 hour live gold chart [Kitco Inc.]

Technically, gold futures bears still have an overall near-term technical advantage. However, Friday’s “out day” high on the daily chart and then Monday’s intraday high price move are early signs that the market has bottomed. Prices are in a four-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to close December futures above solid resistance at $1,900.00. The bears’ next near-term downside price objective is to push futures prices below the solid technical support at $1,800.00. The first resistance is seen at the overnight high at $1,869.50 and then at $1,875.00. The first support is seen at $1,850.00 and then last week’s low at $1,823.50. Wyckoff’s Market Rating: 2.5.

24 hour live silver chart [ Kitco Inc. ]

Silver bears still have the overall near-term technical advantage. Prices are still moving lower on the daily bar chart. Silver bulls’ next upside price objective is to close December futures prices above solid technical resistance at $23.00. The next downside price objective for the bears is to close prices below the solid support at $20.00. First resistance was seen at $22.00 and then an overnight high of $22.18. The next support is seen at $21.50 and then $21.25. Wyckoff’s Market Rating: 2.5.

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Disclaimer: The views expressed in this article are those of the author and may not reflect his views Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is solely for informational purposes only. This is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. And the author of this article is not responsible for any loss and/or damage caused by the use of this publication.

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