Gold Price Prediction – Price Rise After US Attack On Iranian General

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Gold prices rose on Friday after President Trump decided to order an airstrike that killed a powerful Iranian military leader. The preventive measure put riskier assets under pressure when Tehran promised to avenge the death of General Qassem Soleimani. The move is likely just the beginning of geopolitical tensions that will escalate in the region. Gold prices should continue to experience upward momentum due to increasing volatility on the capital markets.

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Technical analysis

The gold price rose, testing target resistance near the September high of 1,535. The weekly gold price charts are about to break out. Short-term support is seen near the 10-day moving average at 1,507. The 10-day moving average has recently exceeded the 50-day moving average, indicating that there is a short-term uptrend. Weekly momentum is positive as the Moving Average Convergence Divergence (MACD) index has generated a crossover buy signal. This happens when the MACD line (the 12-week moving average minus the 26-week moving average) crosses the MACD signal line (the 9-week moving average of the MACD line).

The daily RSI (relative strength index) now reports a value of 82, increasing from 77, reflecting an accelerating positive dynamic. The RSI is above the overbought trigger level of 70 and also indicates a possible future correction.

Tensions in the Middle East increased on Friday. Tehran promised to avenge the death of General Qassem Soleimani and his allies in Iraq and urged that US forces be driven out of the country. Iraqi Prime Minister Adel Abdul-Mahdi condemned the strike overnight, calling it an obvious violation of the rules that stipulate the presence of the US armed forces in the country. The strike also killed Abu Mahdi al-Mohandes, the deputy leader of the people's mobilization force, which is a roof for dozens of militias that are part of the Iraqi security apparatus, but include factions that swear allegiance to the top Iranian leader.

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