Gold strides towards $2k

The persistent fears surrounding the Israel-Hamas war have served as a tailwind for gold prices.

Gold bulls have been emboldened by the war drums banging in the Middle East, even looking past US 10-year yields that flirted with the 5% mark.

The precious metal is now trading at a 3-month high, having surged by 8% since the war broke out.

Gold may well reclaim the $2k handle if the Israel-Hamas war escalates further, especially if the conflict draws in other countries in the region.

However, the fact that spot gold’s 14-day relative strength index has broken above the 70-threshold that marks “overbought” conditions suggests that a technical pullback could be due over the immediate term.