Gold faces decline from Israel-Hamas conflict, weak US Dollar

By- Srushti sharma

With nine straight days of daily losses, gold was in oversold territory last week, suggesting a potential price turnaround.

Short positions were covered and new long positions were increased as a result of the battle.

We anticipated a decline in the value of the US dollar because it was in an overbought zone concurrently with the oversold area for gold.

When the key US inflation data from yesterday came in higher than anticipated, US Treasuries and the greenback rally drove down the price of gold.

When we have confirmation that bond yields have peaked, we will be optimistic on gold.

 It won't be simple for gold to achieve $1900 because we think they are about to peak, but there is still room for growth.

Although the tightening cycle is coming to an end, the Federal Reserve won't reduce interest rates as quickly as investors would like.

That holds true for all central banks worldwide. Compared to a year ago, we are in a completely different position.

Since gold closed above its 20-day moving average, its 50-day moving average, or roughly Rs 58,400, would be the next upward objective.