Gold sees a breathtaking rally as Middle East conflict intensifies
Gold staged a stunning rally on Friday on escalation of the Mideast conflict. The situation took a grave turn after Israel gave Gaza Palestinians twenty-four hours to evacuate the Gaza Strip as the Israeli army prepared for a massive assault in Gaza.
The ultimatum sent huge ripples of heightened geopolitical tensions that put a solid bid under gold prices, taking the metal to its best single-day rally in almost seven months. Once the metal cleared the key resistance at $1900, it culminated into a massive short squeeze as quite a few short positions have been built up over the last few days when the metal yielded the $1900 level to the bears.
Gold's rally was unfazed by rallying US Dollar, which despite a pullback in the US yields, extended its Thursday's advance.
The metal closed with a huge gain of 3.32% at $1932 Friday. The yellow metal recorded a gain of $100 on the week as the ten-year US yields were down nearly 4% to 4.61%.
The US Dollar Index closed with a gain of 0.60% at 106.67 on a weekly closing basis.
The United Nations said that it would be impossible for millions or so inhabitants of North Gaza to move over to the South at such short notice. It may lead to a humanitarian disaster.
