Early in the European session, Gold (XAU/USD) is trading around 1,864.52, above the 21 SMA, and above 3/8 Murray.
On the 4-hour chart, we can see that gold has been on an upward trend since October 6. We can see that it also left a bullish GAP at the opening of negotiations this week.
Between Friday's close at 1,831.51 and this week's trading opening at 1,847, there is a gap that should be closed in the coming days. However, due to risk aversion, gold could continue to rise.
Currently, gold is trading higher and gaining momentum as a safe haven asset due to the escalation of the conflict between Israel and the Palestinian movement Hamas, generating fear in investors who see gold as the only option to avoid losses.
If the tensions of the war in Israel continue, gold could extend its rise until reaching 4/8 Murray at 1,875 and could even reach the 200 EMA at 1,890. If gold surpasses this level, it could reach the psychological level of $1,900 and finally 5/8 Murray at 1,906.
The daily pivot point is located around 1,856. If gold falls and rebounds in the next few hours in this area, it could be seen as an opportunity to buy.
We can also see on the H-4 chart that gold has sharply broken the downtrend channel it has formed since September 20. Therefore, any pullback in the coming hours will be seen as an opportunity to buy. The eagle indicator is giving a positive signal which supports our bullish strategy.