The geopolitical context remains conducive to an upward dynamic in the price of gold while awaiting the next American publications.
Gold price rebounds amid escalating tensions between Ukraine and Russia
The price of gold is poised to end the week on a strong rise, rebounding around 5% to reach $2,680 per ounce. This rebound comes against a backdrop of escalating geopolitical tensions, as the conflict between Ukraine and Russia intensifies.
Ukraine struck Russian territory with its first long-range missiles, triggering an unprecedented response from Russia in the form of intercontinental ballistic missile launches, according to Ukrainian air force sources. Add to this the recent worrying statements by the Russian president, evoking threats of nuclear war. These events pushed investors to massively reposition themselves in safe haven assets such as gold or the dollar, considered a protective value in times of crisis.
Against the euro, the rise in gold is even more pronounced this week, the precious metal gaining almost 6% and returning to test its October 30 record at $2,577, while it is still 3.5% lower than its October 30 record against the dollar.
Gold Price Daily Chart – Key Levels
The price of gold could reach $3,000 by the end of the year
From a technical analysis point of view, the price of gold has just returned above its 50-day moving average, while the underlying trend is bullish, which potentially marks the start of a new leg of significant rise in gold. The outlook therefore becomes bullish again in the short and medium term with the objective of a return to the recent high at $2,785, then an increase to the symbolic threshold of $3,000/ounce.
The global context remains conducive to upward momentum. In addition to the evolution of geopolitical tensions, the evolution of expectations of Fed rate cuts will be important for the price of gold in the short term. Indeed, the probability of a further cut in Fed rates next month is around 50%, so the publications of US PCE inflation on Wednesday November 27 and the monthly report on state employment -United Friday, November 6 will be decisive in shaping expectations.
| Entrée | Purchase at $30 |
| Objective | 35, then 50$ |
| Stop | 28,50$ |
| Risk/Return Ratio | >3 |
