Gold exchange traded funds, such as the SPDR Gold Shares (NYSEArca: GLD), have been rebounding and that rally could be sustainable over the near-term thanks to fresh geopolitical concerns, which could buoy gold’s safe-haven allure.

“The U.S. has threatened to punish Saudi Arabia if it turns out that journalist Jamal Khashoggi was killed in the Saudi consulate in Turkey, and Saudi Arabia responded by warning against any threats,” reports Kitco News.

The safe-haven status of gold, which has been questioned at various points this year, appears to have been renewed over the past couple of days amid heightened equity market volatility. The recent rally in gold comes amid extreme short positioning in the yellow metal and could force traders that short the yellow metal to cover those positions, likely adding to bullion’s near-term upside.

Related: It May Finally be Time to Look at Gold Miners ETFs

Importantly, gold prices have recently stayed above the mid-August lows and a move further above $1,200 per ounce could trigger more buying.

Looking Appealing Here

“Technically the market is still looking fairly positive, [with]gold still trading above a sequence of highs dating back two months ($1,210-1,216),” MKS says. “Going into the week, the next key upside target was the 100-day moving average, which MKS says was around $1,228.20. Chart support sits around $1214-16,” reports Kitco.

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