GOLD Price Analysis – Oct 11, 2023

Daily Price Outlook

Gold's (XAU/USD) price is currently trending positively, positioned above the $1,850 mark. This surge is attributed to multiple factors, including a recovery from its previous week's dip to $1,810, reflecting renewed investor trust. Gold's resilience above the $1,850 benchmark underscores its robustness.

Low-interest-rate expectations further buoy gold's value. As gold doesn't generate interest like some other assets, low rates bolster its appeal. This scenario is currently making gold even more attractive to investors.

Moreover, rising geopolitical uncertainties in the Middle East are spurring gold's demand as a preferred safe-haven during tumultuous times. Consequently, gold's significance is amplified amidst regional conflicts.

For now, the expectation is for gold to sustain its current price. Traders exhibit caution, eagerly awaiting Federal Reserve indicators about potential monetary policy shifts.

It's worth highlighting traders' hesitancy in making major decisions based on gold, as they anticipate Federal Reserve's guidance on future interest rates. The recent US Nonfarm Payrolls report indicated a lack of significant wage growth in September, alleviating some inflationary worries. Statements by some Fed officials hint at a potential policy relaxation, which might influence gold's price trajectory.

Gold also gains support due to Israel-Gaza tensions, though potential interest rate hikes and a strengthening US Dollar might limit its growth. The Middle East conflict might escalate oil prices, challenging the Fed's anti-inflationary measures and impacting future interest rate decisions. Key indicators being watched include the US PPI, FOMC minutes, and CPI.

GOLD (XAU/USD) - Technical Analysis

Gold price stands at $1860.02, presenting an uptick in the current market, as per the 4-hour chart. The pivot point for this precious metal is set at $1831.29. On the resistance spectrum, immediate resistance is identified at $1851.26, followed by successive resistances at $1869.27 and $1889.8. Conversely, the metal finds support at $1812.71 with additional support lines at $1792.18 and $1774.39.

The Relative Strength Index (RSI) registers a value of 64.02, implying a robust bullish momentum without reaching overbought territory. Meanwhile, the MACD, with a value of 1.44, remains above its signal counterpart at 7.13, further emphasizing the bullish trend. Gold's current price is comfortably above the 50-day Exponential Moving Average (EMA) of $1851.02, suggesting a prevailing short-term bullish trend.

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