Gold prices shot up on Thursday as tensions in the Gulf region are mounting after US President Donald Trump said an American naval vessel shot down an Iranian drone that threatened the ship as it was entering the Strait of Hormuz. Gold has been on a while ride this month as investors were waiting to see if the precious metal can hold support above $1,400. We are now clearly above these levels in what seems so be a clear uptrend as more and more hedge fund managers seem to be recommending this type of asset.
Patience has finally paid off for the gold bulls, as demand for the precious metal has pushed prices to levels not seen in nearly six years breaking each resistance level one after the other. The trend is now bullish with the 20-period moving average acting as support on the hourly chart. After briefly breaching the $1450 level, some profit taking pushed back prices down, however, buying on dips seem to be the smart money strategy at least for the short-term. The RSI looks mixed to slightly bullish, although a correction back to the 1418 important key support level is a highly likely possibility.
Support: 1435 / 1418
Resistance: 1448 / 1450