Although tensions in the Middle East kept safe haven supply strong, gold prices rose sharply. The yellow metal maintains its position, supported by the decline in long-term US Treasury bond yields. Investors are awaiting Q3 GDP and the Fed’s preferred inflation gauge, which could influence the Fed’s policy decision in November.
These data will be the focus of investors
Gold prices maintained their gains around $1,970 due to the decline in long-term US bond yields. The precious metal managed to recover quickly, with the short-term trend remaining stronger amid the Israeli-Palestinian conflict. As Israeli troops prepare to enter Gaza, the risk of increased tension in the region continues. According to experts, Israel’s ground attack on Gaza could increase the possibility of Iran intervening in the ongoing conflict.
Investors will focus on US third-quarter GDP figures due on Thursday. Attention also turns to the US PCE price index, which will be released on Friday and has the potential to influence the Fed’s view on interest rates. Markets expect the Fed to keep interest rates steady at next month’s policy meeting, according to the CME FedWatch tool.
Gold prices will rise above $2,000!
cryptokoin.comAs you follow from , the direction of gold is mostly determined by geopolitical developments. RJO Futures senior market strategist Bob Haberkorn says geopolitical concerns won’t go away in the short term. He also states that this will continue to be supportive for gold prices.
Haberkorn notes that if the data shows a slowdown, there will be more reasons for the Fed not to increase interest rates. The analyst emphasizes that this will be very supportive for gold. As a result, he adds, gold prices will rise above $2,000.
Gold prices technical view
Gold markets showed some positivity early in Wednesday’s trading session. Technical analyst Christopher Lewis attributes this to the fact that we continue to see a lot of volatility. The analyst draws the technical picture of gold as follows.
$1,950 and $2,050 are on the cards for gold: Which one will he pull?
Gold prices rose slightly during Wednesday’s trading session. Because we continue to see a lot of back and forth behavior. All else being equal, I think this is a market that continues to look at the $2,000 level above, which is of course a big, round, psychologically important number and an area where you expect to see a lot of pressure. If it breaks above this zone at the daily close, this will obviously bring a lot of bullish pressure.
Looking at this entire volatile environment, it’s clear that the market is trying to figure out whether it can maintain upward pressure. We should probably keep an eye on interest rates and the US dollar. Because it is possible that this will cause a lot of pressure on gold prices. If we break below the bottom of the hammer in the trading session, the market is likely to drop to the $1,950 level. If we go above last Friday’s shooting star, that would be very bullish, of course. Thus, it is possible for gold to initiate a move to the $2,050 level, perhaps even higher than that.
For now, it is a “buy the dip” market, but…
Note that gold currently has a bit of a safe haven proposition due to geopolitical issues in the Middle East. But ultimately the market will need to continue to pay close attention to news from this region and, of course, the bond markets. All else being equal, this is a scenario where market participants continue to see a lot of danger. Therefore, you need to be very careful with your position sizes. This is typical for gold prices. But it is especially so in this type of environment.
The market will continue to see numerous external forces. Therefore, you should look at this as a situation where markets will continue to shake the “weak hands” in the market. At this point, it looks more like a “buy the dip” market. But if we get some kind of good news from the Middle East, then you’ll see gold getting hammered.
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