Gold and oil prices surge as the week starts as Middle East tensions escalated further during the weekend. Iran quitted the nuclear deal and announced it’s no longer bounded by the agreement made in 2015. Iraq denounced US killing of the Iranian general in Baghdad as a violation of the nation’s sovereignty. Iraq’s parliament voted to expel US troops from the country. US President Donald Trump warned of strike to Iran “in a disproportionate manner” if the latter hits any US targets. He also threatened to sanction Iraq if US troops were forced to withdraw from the country.
Gold gaps higher today and hits as high as 1587.92. Break of 1557.04 resistance confirms resumption of up trend from 1160.17. Further rise should be seen to 61.8% projection of 1266.26 to 1557.04 from 1445.59 at 1625.29. As noted before, rise form 1445.59 could be the fifth leg of the five-wave sequence from 1160.17. We’d look for topping signal around 1625.29. However, sustained break of 1625.29 will bring upside acceleration to 100% projection at 1736.37.
