Emmanuel Ochayi
In the wake of continued attacks by Iranian-backed Houthi rebels in the Red Sea, the Gold price has gone above $2,030 as the United States and the United Kingdom respond with airstrikes.
President Biden has warned of further measures, while geopolitical tensions and a weakening US Dollar fuel safe-haven demand.
President Biden states: “I will not hesitate to direct further measures to protect our people and the free flow of international commerce as necessary.” Japan supports airstrikes for safe passage near Arabian Peninsula.
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Mounting geopolitical risks, a potential US recession, and China’s economic concerns contribute to the US Dollar’s decline. Gold remains buoyant despite a brief spike in the Dollar following higher-than-expected CPI data.
Gold’s technical outlook shows strength, with support at $2,015 and resistance at $2,045. Geopolitical developments, US PPI data, and Fed speeches to shape Gold’s trajectory over the extended weekend.
