Spot gold rose 0.3% to $2,783 on Wednesday (Oct. 30), having hit an all-time high of $2,789.73 earlier.
Yesterday it surged to new highs again after the release of United States data. The market seems to be more focused on the weaker-than-expected United States job openings data than the stronger performance of the more forward-looking United States consumer confidence report.
The price of gold is currently strongly influenced by the outcome of the United States election. In the short term, spot gold will face resistance at $2,800, followed by $2,826.
Rumours are that next week’s United States election will be a huge catalyst for gold. A Trump victory, especially a Republican victory, could boost real yields due to higher growth expectations and fewer interest rate cuts.
and triggered a strong sell-off in gold.
The author argues that gold is still in a bullish trend on the broader trend and real yields are likely to continue to decline due to the Fed’s easing cycle. The pullback could be triggered by a repricing of rate cut expectations,
But unless the Fed’s response mechanism changes, the uptrend should continue
Gold technical analysis
Daily chart
On the daily chart, gold managed to soar to new highs after yesterday’s United States data release. From a risk management perspective, buyers will have a better risk-reward setup near the major trend line.
Sellers, on the other hand, will want to see the price break below the trend line to start targeting new lows.
4-hour chart
On the 4-hour chart, it can be seen that the current bullish momentum is defined by a minor trend line. Buyers may rely on this trend line for new highs, while sellers will look to break below it,
to seek a pullback to the major trend line.
1-hour chart
On the 1-hour chart, a spike to the 2790 level can be seen after yesterday’s breakout of the all-time high, with buyers having a better risk-reward setup near the previous all-time high as bullish momentum increases.
At 21:00 Hong Kong time, spot gold was at $2783.10 per ounce.
Author: Zhou Tong (Analyst) 30-10-2024
#The above is only the author’s personal opinion and has nothing to do with the company’s position.
#The policy recommendations are for informational purposes only, there are risks in entering the market, and investment needs to be cautious.