Gold treads water below $2k

The precious metal is now trading just shy of $2k, with markets still wary of an imminent escalation in the ongoing Israel-Hamas war.

Gold has so far refused to buckle under the weight of still-elevated US Treasury yields and higher-than-expected US GDP released yesterday (Thursday, October 26th).

Even as bulls yearn to reclaim the psychologically-important $2k handle, they may find immediate support around $1967.07, which marks the 78.6 Fibonacci retracement line from spot gold's September 2022 through May 2023 ascent.

As long as safe haven demand persists, gold prices should find themselves in a supportive environment.

Bullion bulls are biding time for the opportunity to launch spot gold above the psychologically-important $2,000 mark, on signs of an escalating conflict in the Middle East.

From a technical perspective however, spot gold may experience a near-term technical pullback as its 14-day relative strength index (RSI) flirts with “overbought” conditions.