GOLD Price Analysis – Oct 24, 2024
Daily Price Outlook
Gold (XAU/USD) has bounced back, trading around $2,739 on Thursday after a slight drop of 1.2% the day before, likely due to profit-taking. However, the precious metal is seeing renewed interest as investors turn to safe-haven assets amid the escalating conflict in the Middle East, which shows no signs of easing.
Moreover, the reports of North Korea sending troops to Russia to potentially engage in the Ukraine war have ramped up geopolitical tensions. Plus, rising electoral uncertainties in the U.S. are adding to market jitters.
As investors look for stability in these turbulent times, gold is becoming increasingly appealing, proving once again its value as a reliable safe haven during crises. Given these developments, it seems that gold will continue to attract those seeking a protective asset in today’s unpredictable global landscape.
Gold Gains Momentum Amid Central Bank Rate Cuts and BRICS Summit Focus
On the flip side, gold is gaining traction after the Bank of Canada decided to cut its cash rate by 50 basis points on Wednesday. This has people wondering if the European Central Bank (ECB) might follow suit and lower rates in December, especially with some disappointing economic data coming out of Europe.
As interest rates around the world are expected to drop, gold starts looking like a more attractive option. After all, it doesn’t pay interest, so when rates fall, investors who want some stability often turn to gold as a safe haven.
However, things are shifting in the U.S. regarding interest rates. Strong labor market data has made it less likely that the Federal Reserve will aggressively cut rates anytime soon. Meanwhile, everyone's eyes are on the upcoming BRICS summit in Kazan, Russia.
Countries like Russia are starting to look for alternatives to the U.S. dollar’s dominance, and the idea of a currency backed by gold is gaining some buzz. This shift towards gold as a potential alternative currency, combined with actions from central banks around the globe, is likely to give gold prices a nice boost in the weeks ahead.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,725.85, showing modest gains of 0.38% during the current session. The price is hovering around the pivot point at $2,727.96, indicating potential consolidation before a decisive move.
Immediate resistance lies at $2,733.87, and if this level is breached, the next key resistance points to watch are $2,739.63 and $2,746.70. On the downside, immediate support can be found at $2,720.89, with further support levels at $2,708.90 and $2,701.94, respectively.
The technical indicators present a mixed outlook. The Relative Strength Index (RSI) is at 46, suggesting a neutral stance, neither overbought nor oversold. However, Gold remains below its 50-day Exponential Moving Average (EMA) of $2,735.70, signaling continued downward pressure unless the metal can break above this level.
A close above the 50 EMA could encourage further bullish momentum, pushing prices toward the higher resistance zones.
Given the current positioning, traders might consider an entry above $2,720, with a target of $2,733 for potential profit-taking. However, a stop-loss at $2,710 is advisable to manage downside risks, particularly if Gold dips below the immediate support level.
Conclusion: Gold remains in a neutral technical zone, with the pivot point at $2,727.96 being critical for the next move. A break above $2,733.87 could spark further gains, while a drop below $2,720.89 could increase bearish pressure.
Related News
- USD/JPY Price Analysis – Oct 24, 2024
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.