Gold Extends Gains: Jordan Called Of the Biden Meeting

Monitor gold amid Middle East tensions; Jordan cancels Biden meeting, triggering surge. Silver faces hurdles at $23.20, a 200-day average.

Following a bombing at a Gaza hospital, Jordan called off the Biden meeting.

Tensions in the Middle East escalated further as Jordan officials canceled a planned meeting involving the heads of state from Palestine, Egypt, and Jordan, originally intended to stabilize the region. This decision came after a strike on a civilian hospital, souring already fragile relations and triggering a surge in gold prices.

Gold prices had risen by approximately $63 as market participants factored in the possibility of a ground offensive. Since then, gold prices have consolidated around the spike and the widely watched 200-day simple moving average.

Gold Extends Gains – Jordan Called Of the Biden Meeting

Today’s movement is pivotal for the week ahead. Gold would need to close above $1937, marking the underside of the May-June consolidation pattern and acting as a significant pivot point after rebounding from the previous trendline resistance, which now serves as support. The MACD indicator signals bullish momentum, while the RSI indicates that gold is at risk of entering overbought territory. Despite US treasury yields nearing yearly highs due to robust US retail sales data, gold prices are primarily driven by developments in the Middle East, with limited influence from US bond yields and the US dollar. Support levels are identified at the 200-day moving average, followed by the descending trendline around $1915.

Silver is on the rise, but gains face hurdles ahead of resistance.

Silver, mirroring gold’s movement, has experienced a notable upward trend. The metal rebounded after rejecting a move lower at the 23.6% Fibonacci retracement of the 2021-2022 decline ($20.50). Silver now encounters multiple challenges on the upside, ranging from the $23.20 level to the 200-day moving average.

The 200-day moving average and the $23.20 level pose significant challenges for bullish continuation in silver. Technical traders closely watch the simple moving average, which can serve as pseudo-support or resistance. In this instance, it hovers above the price, potentially complicating further price increases. The presence of the $23.20 level adds additional complexity for bullish investors.

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