Underpinned By Geopolitical Worry

Another ratcheting up of geopolitical worry continues to underpin gold on Monday, with heightened tension in the Middle East front and centre. Spot has recently taken out its early London morning high to print as high as $2,037.6/oz.

• The Jan 19 high ($2,039.4/oz) presents the next technical hurdle to the upside. A break there would expose more meaningful resistance at the Jan 12 high ($2,062.3/oz). A breach there would heighten the chances of a bullish reversal.
• Note that the latest RTRS poll revealed that “analysts raised their 2024 gold forecasts. The poll of 38 analysts and traders delivered a median year-end forecast for gold at $2,053.50/oz. Three months ago, a similar Reuters poll predicted prices would average $1,986.50/oz in 2024.”