Middle East Tensions Rise Gold's Safe-Haven Appeal

Gold rose to around $2,450 per ounce on Friday, nearing record highs and poised for a weekly gain, fueled by recent weak US economic data that increased expectations for Federal Reserve rate cuts. Data released on Thursday indicated that US manufacturing activity contracted more than expected in July, with employment levels reaching lows not seen since 2020. Additionally, jobless claims rose to 249,000, the highest level in nearly a year. Investors are now awaiting the monthly jobs report for further insights later today. Meanwhile, the escalating risk of a broader conflict in the Middle East is rising gold's appeal as a safe haven. Markets are closely monitoring Iran's response to the assassination of Hamas leader Ismail Haniyeh, which followed the killing of Hezbollah's top commander in a Beirut airstrike.

Before the important data releases, gold remains in a sideways trend, with the first support level at 2,435. If this level is breached, the next supports to watch will be 2,413 and 2,390. On the upside, the initial resistance is at 2,475; if this level is surpassed, the next targets will be 2,500 and 2,550.