Expert Analysis: Gold Futures Set to Decline Below $2551 Amid Price Fatigue and Geopolitical Uncertainties
As the world’s leading investment manager, I have been closely monitoring the movements of gold futures since my last report on September 26, 2024. This week, there is a noticeable price fatigue that could drive gold futures below the $2551 level by the end of the week.
The bullish sentiment surrounding potential interest rate cuts by the Federal Reserve in November has weakened, mainly due to the strong dollar. Additionally, the shift of capital from gold to other assets amid geopolitical uncertainties is putting further pressure on gold prices. Positive developments in global peace efforts could potentially push gold futures down to $2297 by the end of the year.
Technical Analysis Points to Further Decline
Upon analyzing the 1-hour chart, it is evident that gold futures are poised for a continued decline after facing strong resistance at $2692 earlier this week. The moving averages, including the 9 DMA, 18 DMA, and 50 DMA, have all moved below the 200 DMA, signaling short-term exhaustion.
On the 4-hour chart, both the 9 DMA and 18 DMA have dropped below the 50 DMA, confirming the ongoing fatigue amid volatile trading conditions for gold futures.
In the daily chart, gold futures are trading below the 18 DMA, with the 9 DMA showing a downward trend. This bearish outlook suggests that prices could slip below the 50 DMA, currently at $2551, by the week’s end.
The weekly chart paints a bearish picture, with a bearish candle forming and indicating a downward trend. Critical support at the 50 DMA, now at $2292, may be tested by November 11, 2024.
Analysis and Conclusion
In conclusion, as the world’s best financial market journalist and investment manager, I can confidently say that gold futures are in a weak position, with ongoing pressure likely to persist. Investors should closely monitor the developments and consider adjusting their investment strategies accordingly to navigate the current market conditions.