On Wednesday (October 18) in the US market, due to the potential escalation of the war between Israel and Hamas, the demand for safe-haven assets surged, resulting in a significant rise in gold prices. Gold reached $1960, with a high of $1962.60 per ounce, marking its highest point since August, and closed at $1947.20 per ounce. Yesterday, during the Asian market session, spot gold suddenly soared, approaching the $1940 mark, a day-on-day increase of $15. The recent conflict in the Middle East provided gold with strong support from safe-haven buyers, pushing its price considerably higher. Even as U.S. Treasury yields continue to rise, approaching multi-year highs, gold remains strong.
Looking at the daily chart, it'sevident that the long-term simple moving average is playing a role. Currently, the 155-day moving average and the level at 1953 are constraining the rise in gold prices. For a confirmed breakout above this moving average, both the opening and closing prices need to stabilize above it. Following that, further resistance will be eyed at 1966 and 1978.10. Gold is forming a series of higher lows, which might continue to provide support and maintain its bullish trend. In the short term, support is seen at 1928 , followed by 1914.10 and then the psychological level of $1900.
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