Geopolitical Uncertainties and Trade War Fears Boost Demand for Gold

Forex - Geopolitical uncertainties and concerns that policies to be implemented by the elected U.S. president Donald Trump may lead to trade wars continue to draw investors seeking safe havens into gold.

Today, gold is trading at $2,645.62, up 0.33% from yesterday after a rise to $2,649.69.

ING emphasized that, in the medium term, some uncertainty remains in the Middle East and Europe even after the Israel-Lebanon ceasefire agreement, which could keep demand for gold as a safe haven consistent.

StoneX analyst Rhona O'Connell stated, “Investor interest has revived after the sell-off following the November 5 elections.”

Brian Lan, managing director of Singapore-based GoldSilver Central, also mentioned, “The market is currently a bit more cautious, and prices are likely to trend downward toward the year-end while remaining within a certain range.”

Analysts are marking $2,651 as resistance for gold. If this level is surpassed, $2,676 could be the new target.

Support levels are at $2,640 and $2,603.