Technical Scoop: Israel Attack, Oil Fuel, Inflation Tick

Excerpt from this week’s: Technical Scoop: Israel Attack, Oil Fuel, Inflation Tick

Gold

Source: www.stockcharts.com

Gold is the ultimate safe haven. The Iranian attack by Israel, growing tension and potential for violence in the U.S. over the conduct of the Trump administration, and growing loss of faith in government have gold, the ultimate safe haven, rising again. No, not Bitcoin, as Bitcoin actually fell at the outset of the attacks against Iran. 

And it is not just the geopolitical tensions that are sparking gold as signs continue to suggest that central banks are still adding to their gold reserves, above what is being reported. Gold rose 3.7% this past week and is now just shy of new highs over $3,500, closing at $3,431. New highs could come early this week as the global and domestic situations worsen. Silver underperformed, rising only about 1%, but still made fresh 52-week highs. Platinum, too, made 52-week highs even as it faded on Friday rather than joining the gold rush. Platinum was up 3.1% on the week. The near precious metals didn’t fare as well as palladium, which fell 2.3%, and copper was off 1.3%. But the gold stocks responded with the Gold Bugs Index (HUI) up 3.0% and the TSX Gold Index (TGD) gaining 4.6%. New 52-week highs also beckon for the gold stocks. 

We note that gold’s RSI is only at 62, so it has room to rise before going over 70 into overbought levels. As noted, new highs are highly probable this coming week. Once new highs are made, we have potential targets up to $3,900. For silver, we are targeting up to $44. No, they won’t reach those levels overnight, nor will it necessarily be a straight-up move. But, given all the tensions, gold remains the ultimate safe haven.

Copyright David Chapman 2025

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