Gold (XAU/USD) Analysis

• Gold spiked higher, falling narrowly short of the all-time high
• FX markets captured the flight to safety while US equity markets were shut
• Gold volatility index eyed ahead of the weekend
• Get your hands on the Gold Q2 outlook today for exclusive insights into key market catalysts that should be on every trader's radar:

Gold Spiked Higher, Falling Narrowly Short of the All-Time High

Gold prices spiked higher in the early hours of Friday morning after reports emerged of the Israeli strike on Iran. The back and forth between the two nations risks sparking a broader conflict between the two and prompted a short-lived flight to safety.

Uncertainty surrounding the conflict in the Middle East has helped push gold prices higher and higher, nearly testing the all-time high around $2431.

On the daily chart, gold continues to trade within overbought territory but the degree of overheating has been cooling down – suggesting a slow down in bullish momentum within the broader uptrend.

The 1.618 Fibonacci extension of the 2020-2022 move reemerges as support at $2360, with a pocket of higher lows providing an area of further interest around the $2320 level. A strong US dollar and rising Treasury yields have done little to deter the rampant rise in the precious metal as central bank buying continues to add to the tailwind.

Gold (XAU/ USD ) Daily Chart