Capital is rotating into havens such as gold and bonds. Moreover, the price of crude is pushing higher. These, as Israel seemingly prepares for its ground offensive against Hamas. Israel's military told Palestinians today to start evacuating northern Gaza and move to the southern part of the territory. Consequently, market participants are on edge as the conflict looks to escalate, following Israel's retaliation for the brutal Hamas attack that took place on Saturday.
1. Gold has climbed by over 2% today.
2. Its green 5-day EMA has bullishly crossed its orange 10-day EMA (black ellipse).
3. The EMAs are trend-following and look to be developing angle and separation.
4. The RSI has pushed to the bullish side of 50 (green rectangle), connoting an underlying bullish momentum is present.
5. If the EMAs can hold formation and the RSI maintain above 50, XAUUSD will be supported, with capital continuing to flow towards the precious metal.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.