Will Gold Prices Rebound Amid Israel-Palestine Tensions? Key Levels to Watch

The Bitcoin USDprecious metals market witnessed divergent movements last week, with spot gold edging 0.81% higher while silver outperformed with 2.8% gains. This price action occurred against a backdrop of stronger-than-anticipated US economic indicators that initially pressured gold downward before geopolitical tensions reversed the trajectory.Market participants observed gold briefly testing the $1810 support level before closing the week at $1832.29. The dramatic escalation in Israel-Palestine hostilities over the weekend created immediate safe-haven demand, causing gold to gap approximately $15 higher at Monday's opening. This development interrupted what appeared to be a continuation of the metal's bearish trend established since May 2023.From a technical perspective, gold's 60-day moving average maintains its downward slope, while the 14-day RSI reading of 38 suggests the commodity remains in neutral territory. The MACD indicator shows potential for a bullish crossover, though the histogram's position below zero indicates any upward movement may represent consolidation rather than trend reversal. Critical resistance zones emerge at $1875 and $1905, with immediate support found at $1818 followed by the psychological $1800 level.The CFTC's Commitment of Traders report reveals noteworthy positioning changes among institutional investors. Between September 27-October 3, speculative long positions contracted by 24,589 contracts while short interest expanded by 17,435 contracts. This net reduction in bullish exposure suggests professional traders remain cautious about gold's intermediate-term prospects despite the current geopolitical premium.Upcoming economic releases including September's PPI, core inflation metrics, and CPI data could significantly influence gold's trajectory. Strong inflation readings might reinforce expectations for additional Federal Reserve tightening, potentially capping gold's upside. Conversely, any signs of economic softening could revive the metal's appeal as an inflation hedge and safe-haven asset.While the Israel-Palestine conflict introduces short-term volatility, the fundamental drivers of gold's medium-term trend - real yields, dollar strength, and central bank policies - remain largely unchanged. Market participants should monitor whether the current risk-off sentiment sustains beyond initial reactionary moves, or if macroeconomic forces reassert their dominance over gold pricing