Gold Stable Amidst Middle East Crisis📈
Gold maintained its stability around the $1,800 mark on Monday in response to the Israel-Hamas conflict. However, the recovery of safe-haven assets hinges on the extent of the crisis and its impact on oil and global markets, analysts noted.
The most active gold futures contract on the New York Comex, December, rose by $19.10, equivalent to 1%, reaching $1,864.30 per ounce. At the time of writing, at 15:30 ET (19:30 GMT), the contract reached $1,875.85 after hitting an intraday high of $1,875.85.
Spot gold, closely monitored by some traders compared to futures, stood at $1,861.51, surging by $28.92, equivalent to 1.6% for the day, with an intraday high of $1,862.26.
Gold had touched a seven-month low last week, with futures reaching $1,859.55, while spot prices dropped to $1,810.47.
Sunil Kumar Dixit, noted that technically, the market's recovery seemed measured despite the Middle East crisis. Dixit said, "Gold maintains stability above $1,850 - $1,855 and seems reluctant to retreat to fill the gap around $1,832". He pointed out immediate support at $1.845; if broken, it might trigger a pullback towards the gap at $1.832. Continuous breakthrough above $1,858 would propel gold toward the next level above $1,880 as the initial target.
On Monday, as Hamas rockets continued to rain down on Israel's largest city, Tel Aviv, and Prime Minister Benjamin Netanyahu declared Israel's fight against Palestinian militants, both oil and gold traders attempted to assess the immediate impact of the crisis on these two assets.
Particularly, attention is focused on the potential impact on Iran's oil supply.
Iran is not only the world's fifth-largest crude oil exporter but also a staunch supporter of Palestine's cause, often seen as an instigator of conflicts in the Middle East.
Iran is implied to be behind Hamas, and to strengthen this stance, Iran's Supreme Leader Ali Khamenei's advisor stated Tehran supported actions against Israel, allegedly leading to approximately 1,300 deaths at the time of writing, and resulting in the kidnapping of dozens of Israelis by the militant group.
John Kilduff, a partner at the energy hedge fund Again Capital in New York, who has spent two decades analyzing the political conflict's impact on Middle East oil, likened this crisis to a "reset" that hopefuls anticipate might change the game for these two sought-after commodities after a dismal start to October trading.
The crisis will determine "how much" benefit it brings to driving prices higher—especially in oil—depending on how severely it affects Iran's crude production and exports. This translates into how many barrels and how much that number increases in the context of the globally tightened oil supply due to OPEC+ production cuts, Kilduff said.
The most active gold futures contract on the New York Comex, December, rose by $19.10, equivalent to 1%, reaching $1,864.30 per ounce. At the time of writing, at 15:30 ET (19:30 GMT), the contract reached $1,875.85 after hitting an intraday high of $1,875.85.
Spot gold, closely monitored by some traders compared to futures, stood at $1,861.51, surging by $28.92, equivalent to 1.6% for the day, with an intraday high of $1,862.26.
Gold had touched a seven-month low last week, with futures reaching $1,859.55, while spot prices dropped to $1,810.47.
Sunil Kumar Dixit, noted that technically, the market's recovery seemed measured despite the Middle East crisis. Dixit said, "Gold maintains stability above $1,850 - $1,855 and seems reluctant to retreat to fill the gap around $1,832". He pointed out immediate support at $1.845; if broken, it might trigger a pullback towards the gap at $1.832. Continuous breakthrough above $1,858 would propel gold toward the next level above $1,880 as the initial target.
On Monday, as Hamas rockets continued to rain down on Israel's largest city, Tel Aviv, and Prime Minister Benjamin Netanyahu declared Israel's fight against Palestinian militants, both oil and gold traders attempted to assess the immediate impact of the crisis on these two assets.
Particularly, attention is focused on the potential impact on Iran's oil supply.
Iran is not only the world's fifth-largest crude oil exporter but also a staunch supporter of Palestine's cause, often seen as an instigator of conflicts in the Middle East.
Iran is implied to be behind Hamas, and to strengthen this stance, Iran's Supreme Leader Ali Khamenei's advisor stated Tehran supported actions against Israel, allegedly leading to approximately 1,300 deaths at the time of writing, and resulting in the kidnapping of dozens of Israelis by the militant group.
John Kilduff, a partner at the energy hedge fund Again Capital in New York, who has spent two decades analyzing the political conflict's impact on Middle East oil, likened this crisis to a "reset" that hopefuls anticipate might change the game for these two sought-after commodities after a dismal start to October trading.
The crisis will determine "how much" benefit it brings to driving prices higher—especially in oil—depending on how severely it affects Iran's crude production and exports. This translates into how many barrels and how much that number increases in the context of the globally tightened oil supply due to OPEC+ production cuts, Kilduff said.
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