Speculators who had seen the $2,000/ounce territory as a distant realm in the past two months are now reclaiming it as investors seek safe havens amidst increasing fears that Israel may indeed launch a comprehensive invasion into Gaza to clear Hamas fighters from Palestinian soil.
The most actively traded Gold Futures Contract on the New York Comex exchange, for the month of 1998, officially closed Friday's trading session at $2,000.1 per ounce, a mere $10.0 increase, equivalent to 0.52%, after reaching its daily peak at $2,017.70 per ounce.
However, in after-hours trading, the gold futures contract edged slightly higher than Friday's peak, standing at $2,017.85 at 15:35 Eastern Time (19:35 Greenwich Mean Time), up by $20.45 or 1.02% for the day.
Gold's post-settlement recovery comes as traders react to a series of headlines on the latest Middle East conflict, where Israel and Hamas are no closer to a resolution despite strong mediation efforts by the United States and other global powers.
A Hamas official has set conditions for releasing hostages in Gaza as part of a ceasefire during Israel's assault on Palestinian territory, as reported by Reuters. Israel has indicated its readiness for a ground invasion, but has been urged by the United States and Arab nations to postpone an operation that could escalate civilian casualties in the densely populated coastal strip and potentially ignite a larger conflict.
"It's a 'mess,' for lack of a better word," said John Kilduff, a partner at the New York-based energy hedge fund Again Capital, in comments that could apply to traders across various markets. Kilduff noted that, to his knowledge, no trader "knows where this is heading, and everyone is just jumping from one headline to another."
"However, it's a real day for volatility traders," he added.
Spot gold prices, which some traders follow more closely than futures contracts, reached $2,007.13 USD, a $22.24 USD increase, equivalent to 1.1%, after hitting a high of $2,009.41 USD during the session.
"With spot gold successfully surpassing the $1,998 USD resistance and reaching $2,009 USD, the next major push is aiming for $2,050 USD and $2,075 USD," said Sunil Kumar Dixit, Chief Technical Strategist at SKCharting.com. "Immediate support for spot gold has also moved higher, to the $1,990 - $1,980 USD range."
Israeli forces have launched their largest ground assault on Hamas in Gaza, with Prime Minister Benjamin Netanyahu stating that the Israeli military is still preparing for a comprehensive invasion.
While this remains in the context of strong global mediation, the threat from Iran, the fifth-largest oil producer, appears to increase with each passing day of the three-week-long conflict. Tehran, a staunch supporter of Hamas, has consistently been tempting Israel's ally, the United States, since Hamas's bloody attack on southern Israel on the 7th of , leading to one of the worst conflicts in the Middle East in decades. The U.S. military targeted Iranian sites in Syria last Friday, prompting Iran's Foreign Minister Hossein Amirabdollahian to warn that the U.S. will "not escape this fire."
In another development, missiles struck two towns in Egypt's Red Sea, causing injuries, according to sources and officials, indicating the potential regional spillover from the conflict.
The most actively traded Gold Futures Contract on the New York Comex exchange, for the month of 1998, officially closed Friday's trading session at $2,000.1 per ounce, a mere $10.0 increase, equivalent to 0.52%, after reaching its daily peak at $2,017.70 per ounce.
However, in after-hours trading, the gold futures contract edged slightly higher than Friday's peak, standing at $2,017.85 at 15:35 Eastern Time (19:35 Greenwich Mean Time), up by $20.45 or 1.02% for the day.
Gold's post-settlement recovery comes as traders react to a series of headlines on the latest Middle East conflict, where Israel and Hamas are no closer to a resolution despite strong mediation efforts by the United States and other global powers.
A Hamas official has set conditions for releasing hostages in Gaza as part of a ceasefire during Israel's assault on Palestinian territory, as reported by Reuters. Israel has indicated its readiness for a ground invasion, but has been urged by the United States and Arab nations to postpone an operation that could escalate civilian casualties in the densely populated coastal strip and potentially ignite a larger conflict.
"It's a 'mess,' for lack of a better word," said John Kilduff, a partner at the New York-based energy hedge fund Again Capital, in comments that could apply to traders across various markets. Kilduff noted that, to his knowledge, no trader "knows where this is heading, and everyone is just jumping from one headline to another."
"However, it's a real day for volatility traders," he added.
Spot gold prices, which some traders follow more closely than futures contracts, reached $2,007.13 USD, a $22.24 USD increase, equivalent to 1.1%, after hitting a high of $2,009.41 USD during the session.
"With spot gold successfully surpassing the $1,998 USD resistance and reaching $2,009 USD, the next major push is aiming for $2,050 USD and $2,075 USD," said Sunil Kumar Dixit, Chief Technical Strategist at SKCharting.com. "Immediate support for spot gold has also moved higher, to the $1,990 - $1,980 USD range."
Israeli forces have launched their largest ground assault on Hamas in Gaza, with Prime Minister Benjamin Netanyahu stating that the Israeli military is still preparing for a comprehensive invasion.
While this remains in the context of strong global mediation, the threat from Iran, the fifth-largest oil producer, appears to increase with each passing day of the three-week-long conflict. Tehran, a staunch supporter of Hamas, has consistently been tempting Israel's ally, the United States, since Hamas's bloody attack on southern Israel on the 7th of , leading to one of the worst conflicts in the Middle East in decades. The U.S. military targeted Iranian sites in Syria last Friday, prompting Iran's Foreign Minister Hossein Amirabdollahian to warn that the U.S. will "not escape this fire."
In another development, missiles struck two towns in Egypt's Red Sea, causing injuries, according to sources and officials, indicating the potential regional spillover from the conflict.
