Gold, Silver: Will Israel-Hamas Conflict Reverse Mid-Term Bearish Trend?

investing.com:

Since May, gold and silver have been in a downtrend, mainly due to the Federal Reserve's hawkish stance which has sent long-term borrowing costs flying higher, boosting the US dollar.

Recently, selling pressure has increased, causing bullion to test a crucial support level at around $1810 per ounce.

However, the ongoing downtrend has experienced a partial interruption due to the recent escalation of tensions between Israel and Hamas, leading to an increased demand for safe-haven assets. Should the conflict intensify and trigger further shockwaves throughout the Middle East, it is likely that precious metals may garner even greater attention from potential buyers.

Still, a full-blown bull market for precious metals might take a bit longer, especially with U.S. interest rates still on the high side.

Gold's recent upward momentum, starting from the demand zone at $1810 per ounce, has slowed down a bit, but there's still potential for further growth. Right now, buyers have their sights set on the resistance at around $1910 per ounce

In the short and medium term, a renewed attack on $2,000 per ounce could be problematic, as the Fed is not considering starting a cycle of interest rate cuts any time soon.

The likelihood of a Federal Reserve interest rate cut is currently projected for June next year.

Silver prices are experiencing a situation similar to gold, with a demand-driven upward movement that has recently lost some momentum.

The formation of a triangle pattern suggests a potential breakout to the upside, making an upward scenario highly probable.

The base case scenario is an attack on the clearly outlined resistance area located in the area of $22.50 per ounce.

A potential downside scenario for silver is a decline to at