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Hope Re: Israel-Hamas Hostage Deal Helps Limit Rally


The London morning saw the early lower yield/USD-induced rally halted by the circulation of an Axios source report suggesting that a deal between Israel and Hamas that would see hostages taken in the 7 Oct attacks released in exchange for a ceasefire in Gaza is “imminent.”

  • That meant that spot didn’t push above $1,995/oz, pulling back to around $1,985/oz in subsequent dealing.
  • Note a move off session lows for both U.S. Tsy yields and the broader USD would have also factored in to the move away from best levels.
  • TD Securities have flagged cleaner positioning in precious metals as part of an argument pointing to the potential for short-term tactical downside, although they believe that silver is more susceptible to such a move than bullion.
  • Technically, well-defined parameters remain in play and bulls are in control at present. A stronger resumption of gains would open $2,022.20/oz, the May 15 high. The bull trigger at $2,009.4/oz, the Oct 27 high, provides initial resistance ahead of there. Conversely, a clear break of the 50-day EMA ($1,943.4/oz today) would undermine the bullish theme and expose $1,908.3/oz, the Oct 16 low.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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