GOLD is close to the current level of 2,758 USDOn Tuesday (October 29) in the Asian market, spot gold suddenly increased sharply in the short term. Gold price just touched 2,757.74 USD/ounce, setting a new intraday high and approaching the previous historical high.
Traders prepare to release key economic data that will help set the tone for the Federal Reserve's next policy decision. Although tensions in the Middle East appear to have cooled, the Uncertainty about the US election still supports gold prices.
The Fed will announce its interest rate decision at its two-day meeting starting November 6. Jobs and inflation data, as well as if the results of the US presidential election are contested, This could influence the Fed's decision.
The market still expects policymakers to cut interest rates by 25bps at their November meeting. Lower borrowing costs are typically positive for gold, which does not yield a yield.
According to CME's FedWatch Tool, the market expects the probability of the Fed cutting interest rates by 25 basis points to be about 98.4%.
When the presidential election between Harris and Trump was still too close, gold had 3 consecutive weeks of increases despite the increase in US Treasury bond yields and the USD, which often puts pressure on precious metals, losing correlation. This describes both gold and USD as having separate supports.
According to the latest statistics from the China Gold Association, China's gold consumption decreased by 11.2% year-on-year in the first three quarters of 2024 as high prices suppressed jewelry demand.
Analysis of technical prospects for OANDA:XAUUSD
Gold has had 3 consecutive days of increase and is heading for the 4th day of price increase after adjusting and taking support from the short-term price channel and the 1% Fibonacci level.
Currently, gold is close to the all-time peak set previously, once gold breaks the $2,758 level which is also the target increase since gold corrected down from this level, it will have enough room to continue. upside with the next target around 2,768USD in the short term, more than the 2,786USD price points of the Fibonacci 0.382% and 0.50%.
The relative strength index (RSI) is pointing up with no signs of weakness as it approaches the overbought area, suggesting that bullish momentum remains solid, and as long as gold remains within the channel it will continue to trend. short-term upward trend.
However, in case it is sold below 2,700 USD, it will open up expectations for a medium-term correction down cycle with the target at the area of the EMA21 moving average. In the current market context, this scenario is quite unlikely.
During the day, the bullish technical outlook for gold prices will be brought into focus again by the following notable levels.
Support: 2,745 – 2,741 – 2,725USD
Resistance: 2,758 – 2,768 – 2,786USD
SELL XAUUSD PRICE 2774 - 2772⚡️
↠↠ Stoploss 2778
→Take Profit 1 2767
↨
→Take Profit 2 2762
BUY XAUUSD PRICE 2730 - 2732⚡️
↠↠ Stoploss 2726
→Take Profit 1 2737
↨
→Take Profit 2 2742
