As shown on the XAU/USD chart, the gold price is near $2,460 today, despite the 8th August candle opening around $2,385. This means that in just over three full trading sessions, the price per ounce has risen by approximately 3.3%. It is now only about 1.6% away from the psychological level of $2,500.
Bullish sentiment is being driven by rising geopolitical tensions. According to Trading Economics:
→ Israeli airstrikes on Khan Yunis on Monday killed at least 18 people, with several others injured.
→ Ukrainian forces last week breached the Russian border and are holding positions in the Kursk region.
Technical Analysis of the XAU/USD Chart
The gold price is forming a trading channel (indicated in blue), with:
→ the current rise pushing the RSI indicator into overbought territory;
→ the price reaching the upper boundary of the blue channel;
→ in similar past situations (marked by yellow circles), a pullback to the channel’s median has consistently occurred, but this does not guarantee the same outcome this time;
→ the $2,436 level may act as support for the current price, having shown resistance signs on Friday before being breached by bulls.
It is possible that the gold price could set a new all-time high, driven by volatility spikes in the coming days.
The current bullish sentiment may be supported by market participants positioning themselves ahead of key US economic news: the Consumer Price Index (CPI) report will be released tomorrow (at 15:30 GMT+3), and on Thursday (also at 15:30 GMT+3), Core Retail Sales data and unemployment news will follow.
According to Dow Jones Newswires, Axis Securities research analyst Deven Gaglani believes that “a break above the $2,483 high and a weekly close above this level would be a bullish signal, potentially pushing prices to $2,550.” He also suggests that news of easing inflation could lead to a rise in gold prices.
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