Gold prices remained steady today despite weak Chinese data causing a risk-off start to the week. Market uncertainty and geopolitical tensions are supporting gold’s safe-haven appeal, leading to a push back towards Friday’s highs above the $2660/oz handle.
Despite the prospect of less aggressive rate cuts from the Federal Reserve, Gold bulls still appear dominant. Market participants are now expecting less than 50 bps of rate cuts from the Fed by year-end, but Gold prices remain elevated due to prevailing risks in global markets.
Factors such as uncertainty around China’s growth, geopolitical dynamics, and hope for Chinese stimulus are keeping market participants on edge, supporting the safe-haven play for Gold.
Economic Data and Week Ahead
Today, US markets may experience thin liquidity as Columbus Day is celebrated. Federal Reserve policymakers Waller and Kashkari are scheduled to speak, with dovish sentiments expected to keep Gold prices bid. Lack of high-impact US data this week could see Gold influenced by overall sentiment, geopolitics, and Fed policymaker comments.
Technical Analysis Gold (XAU/USD)
Gold surprised with last week’s rally above the psychological 2650 handle. The current bullish trend may limit downside potential, with immediate support at 2650 and further support at 2643-2640. Resistance levels are at 2670, 2685, and 2700.
GOLD (XAU/USD) Four-Hour (H4) Chart, October 14, 2024
Source: TradingView
Support: 2650, 2643-2640
Resistance: 2670, 2685, 2700
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Analysis: Despite weak Chinese data and market uncertainty, Gold prices remain steady due to safe-haven appeal. Factors like geopolitical tensions and hope for Chinese stimulus are supporting Gold. Technical analysis shows bullish trend with limited downside potential and key support/resistance levels identified. Pay attention to Fed policymakers’ comments for further price movements.