Article by: ETO Markets

Last Friday's session saw a further increase in the price of gold as demand for safe-haven assets increased as a result of the escalating Middle East war. Tensions between the Houthi rebels and the US military are growing along the main commercial shipping route that crosses the Red Sea, which is exacerbating the situation in Gaza. Furthermore, Pakistan launched military operations in Iran on Thursday in retaliation for Iran's comparable attack on its land. The precious metal has made a substantial comeback, but the short-term picture has not changed to one of bullishness as expectations on a Federal Reserve interest rate decrease appear to have limited additional upside. 

The price of gold surged to about $… on last Friday. After attracting purchasing interest close to the psychological support level of $…, the precious metal made a robust recovery. After finding support from the 50-DMA, which is currently trading at $…, the yellow metal recovered. The 20-DMA around $… is still serving as a barrier for those who are bullish on the price of gold, nevertheless. The Relative Strength Index recovered after testing the area around 50.