The situation in the Middle East is heating up and gold prices are rising and falling. How to invest well?
Written by 陳雅婷Last updated: 
As tensions in the Middle East intensified, gold prices soared above US$2,400 per ounce in early Asian trading on Monday (7/30). However, as the US dollar strengthened and there were reports of US efforts to curb Israeli retaliatory actions, gold prices quickly fell back and once fell below US$2,370. /oz, it’s been a tumultuous day for gold investors. Additionally, the U.S. dollar’s two-week high compounded the situation, pushing up the cost of gold for international buyers. So, how should one trade gold in this situation?
- Israeli-Palestinian conflict intensifies, gold price breaks through 2,400
- Gold prices plummet as US suppresses Israel’s actions
- gold price trading strategy
Israeli-Palestinian conflict intensifies, gold price breaks through 2,400
On July 27, local time, a devastating rocket attack hit a football field in Megidar Shams, a town in the Golan Heights controlled by Israel, killing 12 children and teenagers and injuring 44 others. The worst civilian losses since. In retaliation, Israeli Prime Minister Benjamin Netanyahu and Defense Minister Garland were authorized to plan military action against Lebanese Hezbollah, raising concerns about an escalation. Affected by this news, the price of gold ROSE sharply after the opening of trading on Monday (7/29), reaching a maximum of $2,402.49 per ounce.
Gold prices plummet as US suppresses Israel’s actions
However, there is news that the United States is taking the lead in suppressing Israel’s retaliatory actions. According to multiple sources, including Lebanese and Iranian officials as well as Middle Eastern and European diplomats, the United States is actively working behind the scenes to avoid a potentially devastating war between the two sides. Elias Bou Sabo, Deputy Speaker of the Lebanese Parliament, revealed that he has been in close contact with the US mediator Amos Hochstein after the attack and urged Israel not to attack Beirut and surrounding areas to avoid a serious situation upgrade. Separately, tensions escalated after Israel accused Hezbollah of launching rocket attacks on the Golan Heights, a claim Hezbollah denied. After this news came out, gold prices plummeted from highs during New York trading on Monday, once falling to a low of $2,369.51 per ounce. In addition, the dollar’s strength against other currencies also put pressure on gold prices, with the greenback hitting a two-week high, making the precious metal more expensive for international investors. Affected by this, spot gold closed down 0.15% to US$2,383.42 per ounce throughout the day, with an intraday high of US$2,402.49 and a low of US$2,369.51. Investors should remain alert to further market developments and the potential impact on gold prices. As the situation remains fluid, investors are watching developments closely and awaiting further clarity on the outcome of diplomatic efforts. While the immediate impact on financial markets may be limited, the long-term effects of a potential conflict between Israel and Hezbollah could have far-reaching consequences for the region and the global economy. So, in this case, how should investors invest in gold?
gold price trading strategy
The direction of the market remains uncertain as traders prepare for the upcoming Federal Reserve meeting. However, analysts believe that gold prices are still biased upward. If gold buyers are able to reclaim $2,400/oz levels, it could pave the way for a rebound towards the psychological $2,450/oz zone and eventually all-time highs around $2,483/oz, with the $2,500/oz mark just around the corner. . However, if buyers fail to overcome the $2,400/oz mark and fall below the 50-day moving average (EMA) of $2,358/oz, it will intensify the fall in gold prices. The next support level will be the July 25 low of $2,353 per ounce. A fall below these levels would see gold prices fall to the 100-day moving average of $2,326 per ounce and then to $2,300 per ounce.
