Gold surged after Israel launched a military strike on Iran, prompting investors to move to safe-haven assets.
Markets will now be looking at the potential for a wider escalation in the region and a potential Iranian retaliation. This could keep Haven flows strong in the interim as things unfold over the coming hours ahead of the weekend.
Technical Analysis – Gold (XAU/USD)
From a technical analysis standpoint, the technicals have been pointing to the possibility of upside for the precious metal following the retest of the bear flag breakout earlier in the week.
Gold will be driven largely by the developments between Israel and Iran over the coming days.
For now, though, price is testing the previous swing high of May 6 around 3432 with further resistance possible at 3450 and 3475.
