Gold Prices Slide as Q3 Draws to a Close – What’s Next?
Gold prices took a hit on Monday due to a stronger dollar and end of quarter flows, but the precious metal is still on track for its best quarter since Q1 of 2016. The safe haven appeal of gold and expected rate cuts are keeping investors interested, but several factors, including profit taking and the recent rally in Chinese equities, may be contributing to the drop.
The stimulus measures from the PBoC have boosted Chinese equities, potentially impacting gold prices as well. However, gold is currently in overbought territory, which could limit further upside. Market sentiment may continue to fluctuate ahead of the US jobs data release on Friday, with any increase in rate cut expectations likely to weaken the USD and support gold prices.
Looking ahead, economic data and the US jobs report will be key drivers for gold prices. Technical analysis shows that gold is facing resistance at the 2650 mark, with potential for a retest of last week’s highs and the all-time high around 2685.50. Support around 2625 could still hold, but monitoring this level is crucial for future price movements.
In summary, gold prices are facing both positive and negative factors, with market sentiment likely to be influenced by economic data and central bank actions. Investors should pay close attention to key support and resistance levels, as well as upcoming events that could impact the price of gold.