⏫🟡GOLD is testing $2730!

Tensions in the Middle East are driving gold prices to new historical highs

Over the weekend, a drone attack attributed to Hezbollah targeted the Israeli Prime Minister's residence. The drone detonated near the property, escalating fears of an Israeli retaliation against Iran. However, no direct response against Iran has materialized thus far. Israel has instead opted for a series of missile strikes in the Gaza Strip and Lebanon. The Lebanese attacks were reportedly aimed at Hezbollah's financial institutions. According to CNN, over 1800 Lebanese civilians have been killed since the initial Israeli offensive against Hezbollah in Lebanon.

Gold continued its robust rally from the previous week, testing the $2732 per ounce level today. Since the local low in June following an initial consolidation this year, gold has gained almost 20%. Moreover, a level of $2770 per ounce coincides with a 200% Fibonacci retracement of the entire largest nominal decline, which occurred between 2011 and 2016. Gold is currently trading within an ascending channel, while below, a buffer zone between the 50-day and 100-day moving averages has provided support for the precious metal since November 2023.