Gold price (XAU/USD) extends its upside move as investors’ appeal for precious metals remains upbeat due to the deepening crisis in the Middle East. The precious metal delivered a breakout of the consolidation formed in a range of $1,909-$1,932 despite the fact that robust US Retail Sales data elevated expectations of one more interest rate hike from the Federal Reserve (Fed) for the remainder of 2023.

Demand for bullion rose significantly due to the escalating conflict between Israel and Palestine after the strike at a Gazan hospital. The hospital blast in Gaza resulted in hundreds of casualties, which has created room for an intervention by Iran. Earlier, Iran warned of a possible intervention if Israel appears for a ground assault. Meanwhile, US President Joe Bide remained ‘loud and clear’ that the US stands with Israel. The US Dollar consolidates in a tight range ahead of the speech from Fed Chair Jerome Powell. It will be worth watching whether Jerome Powell reiterates the appropriateness of some further policy-tightening or will join other Fed officials who have supported the need to keep interest rates steady due to rising US bond yields.

Gold price climbs above $1,940.00 amid an escalating Israel-Palestine conflict. The precious metal is inches far from the four-week high around $1,947.00 after stabilizing above the 200-day Exponential Moving Average (EMA), which trades around $1,905.00. The yellow metal is expected to extend upside toward the crucial resistance of $1,950.00