Gold price and Brent crude price surges

Oil prices have surged significantly due to rising tensions between Iran and Israel in the Middle East. At the same time, gold and silver are continuing to see gains. Gold, silver, and oil prices are currently experiencing significant fluctuations, presenting substantial opportunities for investors. The volatility in these commodities is driven by various factors, including geopolitical tensions, economic data, and market sentiment. For investors, this unpredictability can create lucrative opportunities to capitalize on price swings.

Gold price targets new highs

Gold surged to 2,451, breaking above 2,432 and signaling a strong bullish reversal, with potential targets at 2,480 and 2,566.

On Wednesday, gold extended its gains, reaching a peak of 2,451 and breaking above the previous interim swing high of 2,432 (C). This move follows a bullish reversal after a successful test of support near the 50-Day Moving Average last week. The 20-Day Moving Average was reclaimed yesterday, signaling a potential continuation of the upward trend. Gold is poised to close the day strongly, trading near its daily highs. A daily close above the 2,432 swing high would confirm a bullish reversal of the recent bearish retracement.

Silver price rises

Silver's recovery is ongoing after reaching a three-month low earlier this week. The price has climbed back above the 100-day simple moving average (SMA) and continues to rise, supported by a bullish stochastic crossover.
Further gains could drive the price towards the 50-day SMA and the $31.00 highs from early July. Silver rose in the hours following the Fed's decision to leave interest rates steady, The US Federal Reserve announced on Wednesday (July 31) that it will continue to hold its benchmark interest rate steady at 5.25 to 5.5 percent following the two day Federal Open Market Committee meeting. The central bank has now maintained its policy for one year since its last rate increase in July 2023.

Brent crude price surges

Oil prices have rebounded sharply due to escalating tensions in the Middle East.
After hitting a low of $78.00, Brent crude oil is poised for further gains and could approach the previous highs of around $88.00 from early July. However, a close above the 200-day SMA is required to confirm this upward momentum.

International benchmark Brent crude traded at $81.44 per barrel at 10.13 a.m. local time (0713 GMT), a rise of 0.74% from the closing price of $80.84 per barrel in the previous trading session.
The American benchmark West Texas Intermediate (WTI) traded at $78.33 per barrel at the same time, a 0.53% increase from the previous session that closed at $77.91 per barrel.

Geopolitical Risks of 2024

Geopolitical risks, including heightened tensions and conflicts, have a substantial impact on gold and silver prices. For example, escalating situations such as the Russia-Ukraine conflict or tensions in the Middle East often drive investors toward safe-haven assets like gold and silver. As these geopolitical uncertainties increase, demand for precious metals typically rises, pushing up their prices. Market volatility and global instability further amplify this effect, leading to higher valuations for gold and silver as investors seek stability and protection for their assets. Consequently, geopolitical risks remain a crucial factor influencing precious metal markets.

1. Russia-NATO Tensions
The Russia-Ukraine conflict remains a major geopolitical risk in 2024. It has sparked a humanitarian crisis and increased risks in global capital flows, trade, and commodity markets.

2. Cyber Attacks
Cyberattacks are a growing geopolitical risk, becoming larger, more intricate and more relentless. They are a significant threat to individual organizations and national security.

3. US-China relations
Several unresolved conflicts and rivalries will be key sources of geopolitical risk in 2024, with the primary concern being the de-risking between the US and mainland China.
China's growing military presence in the South China Sea, technological advancements, and persistent trade tensions with the US have all contributed to heightened geopolitical tensions.

4. Conflicts in Middle East
The conflict in the Middle East has sharply escalated, driven by intensified hostilities between key regional players such as Iran and Israel. The surge in tensions has led to a significant increase in military actions and rhetoric, exacerbating the already volatile situation. This escalation has had far-reaching implications, including severe humanitarian impacts, with civilian casualties rising and displacement of populations increasing. The conflict has also disrupted regional trade and oil supply chains, leading to volatility in global markets. As both sides ramp up their operations, international diplomatic efforts to mediate and de-escalate the situation are becoming increasingly urgent.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.