Gold rises above $5,000 on Middle East tensions as focus shifts to US core PCE, GDP data

💡 DMK Insight

Gold’s recent uptick signals a shift in trader sentiment amid rising geopolitical tensions. With the US-Iran situation escalating, investors are flocking to safe-haven assets like gold, pushing prices higher. This trend is particularly relevant as we approach key technical levels; if gold can maintain above its recent resistance, it could pave the way for further gains. Traders should keep an eye on the $1,900 mark, which has historically acted as a psychological barrier. A sustained break above this level could attract more bullish sentiment and potentially trigger buying from both retail and institutional investors. On the flip side, if tensions ease or the US dollar strengthens unexpectedly, we might see a pullback in gold prices. It’s worth noting that while geopolitical risks often drive gold higher, they can also lead to volatility. Therefore, monitoring news developments closely is crucial for timing entry and exit points effectively.