Gold Prices Forecast: XAU/USD Surges Amid Middle East Tensions.

Gold (XAU/USD) has recovered to $1,970 after rebounding from a weekly low of $1,950 in early Asian trading on Wednesday. The US dollar (USD) has stabilized, supporting the precious metal's modest gain.
The US Dollar Index (DXY), which measures the USD's strength versus six important currencies, is still close to 106.25 at the same time. However, since gold doesn't pay interest, a prospective rise in US Treasury bond yields might cap its upward potential.

Rising Middle Eastern geopolitical tensions may increase demand for safe-haven assets and thus raise gold prices. Gold dealers will keenly monitor the release of the US Core Personal Consumption Expenditure Index (PCE) on Friday and the first estimate of the Q3 Gross Domestic Product (GDP) on Thursday. These economic indicators will offer traders hoping to profit from changes in the price of gold (XAU/USD) useful information.

Technical prognosis for the XAU/USD price
Technically, after challenging support earlier in the day, the XAU/USD continues upward inclined, with prices bouncing around a high of $1953 set on September 1. After that, Gold surged to its current spot price and may soon make a bid for the $2000 barrier. The year-to-date (YTD) high of $2070 will be the next hurdle to be overcome after that level is cleared. In contrast, if Gold drops below the low of $1953 set on October 23, look for a drop to $1950 and then a drop further to the $1931 level.