Gold Doesn't Stop Its Climb
Rising tensions in the Middle East, especially recent clashes between Hezbollah and Israel, have increased uncertainty in global markets. Investors, seeking safe-haven assets to protect their capital, have naturally increased their exposure to gold.
The possibility of escalations in geopolitical tensions in the Middle East has the potential to further drive demand for gold as a safe-haven asset, creating a favorable environment for the precious metal.
The unstable political situation in other parts of the world, including Eastern Europe, may also support gold prices in the short and medium term. Gold continues to maintain a strong upward trend, with positioning above $2,630. Bulls are waiting to close above $2,650 to increase their positions, with the $2,660 resistance level representing the next juicy upward target.
On the downside, a strong return of the bears could be seen after a clear close below $2,600, with support at $2,560 acting as the last major barrier before the gold tests the nearest yearly level at $2,493.29.$.
Experts believe the upward trend will continue, driven by elections in over 60 countries in 2024. Investors are expected to continue purchasing what is undoubtedly the ultimate safe-haven asset. According to Kinsella, looking to the second half of the year, two factors could lead to a price increase. Firstly, U.S. election campaigns will likely highlight the country’s excessive debt levels, raising concerns about U.S. fiscal sustainability, which would be positive for gold. Secondly, geopolitical risks are expected to remain high, with deteriorating relations between major powers providing additional upward pressure on gold prices.”.