Gold pushes higher as Middle East conflict rages on

• Gold continues its uptrend as the conflict in the Middle East remains unabated.
• The changing outlook for global interest rates, however, could put a limit on Gold’s upside.
• XAU/USD trends higher as a multi-time-frame uptrend extends.

Gold (XAU/USD) resumed its upward trajectory on Tuesday, trading in the $2,730s following a brief period of retreat. The yellow metal is experiencing a surge in value as a result of the escalating conflict in the Middle East, which has led to a rise in demand for safe haven assets. However, the tempo of this rally has slowed as a result of the global bond market’s sell-off in response to a revised global interest rate outlook.

Investors are now anticipating a more gradual decline in interest rates, as the likelihood of another double-dose 50 basis point (bps) (0.50%) mega reduction by the Federal Reserve (Fed) has been diminished by unexpectedly robust US data. This, in turn, diminishes the appeal of Gold as a non-interest-paying asset.

Gold may continue to radiate as the BRICS bloc convenes for its annual summit in Russia. According to James Hyerczyk of FXEmpire, the BRICS are likely to prioritize the development of a new gold-backed currency, which would likely result in additional gains for the precious metal. This is due to the fact that de-dollarization is currently on the agenda.

Safe-haven migrations have resulted in an increase in gold prices.
Due to the escalating conflict in the Middle East, investors are increasingly seeking stability, which has resulted in a rise in gold prices. Despite the eleventh visit to the region by US Secretary of State Anthony Blinken since the conflict’s inception, a cease-fire agreement remains as elusive as ever.

Hezbollah declared the launch of missiles at two bases in the vicinity of Tel Aviv and one near Haifa on Tuesday morning. This was the result of a sequence of Israeli airstrikes on Beirut and southern Lebanon.

According to the Lebanon Ministry of Health, the fatality toll in a single Israeli strike near Beirut’s Hariri Hospital has increased to 13, as reported by Reuters.
In an effort to eliminate the bank that supplies Hezbollah with funding, Israel intensified its bombardment of Beirut on Monday by eradicating numerous economic targets.

Over the weekend, an Iranian drone penetrated Israeli air defence systems and exploded near Israeli Prime Minister Benjamin Netanyahu’s private residence, placing an anticipated Israeli retaliatory attack on Iran back on the menu.

Technical Evaluation: Gold is surging towards its subsequent upward trajectory

Gold has maintained a consistent upward trajectory across all time frames (short, medium, and long). Following its recent breach of the $2,700 threshold, it is currently en route to the subsequent objective of $2,750.