Gold Prices Surge Past $2,620 as Dollar Weakens: What Investors Need to Know
Gold prices climbed above $2,620 per troy ounce on Tuesday, driven by a weaker dollar and uncertainty surrounding the Federal Reserve’s monetary policy. The probability of a Fed rate cut in December currently sits at 59%, showing a slight decrease from previous days.
Investors are closely watching for potential cabinet picks by US President-elect Donald Trump, whose protectionist agenda could impact gold prices. The anticipation of key appointments that will shape Trump’s economic policies is adding to market volatility.
Global geopolitical tensions are also contributing to the demand for safe-haven assets, boosting gold’s attractiveness. Despite recent declines, the underlying factors supporting gold’s long-term growth are encouraging investors to enter the market at what they consider to be favorable levels.
Technical Analysis of XAU/USD:
– H4 Chart: The market has completed a correction to 2,537 and is now poised for a growth wave targeting 2,688. A potential retracement to 2,610 may occur before further advancing towards 2,790, supported by a bullish signal from the MACD indicator.
– H1 Chart: Gold is currently in the initial phase of a growth wave towards 2,688, with the price consolidating around 2,609. An upward breakout from this range is expected to lead to a target of 2,660, followed by a pullback to 2,609 before continuing the ascent. The Stochastic oscillator confirms strong upward momentum.
In summary, gold prices are on the rise due to a weaker dollar, uncertainty surrounding the Fed’s policy, and geopolitical tensions. Investors should pay attention to key appointments by President-elect Trump and technical indicators pointing towards further gains in gold prices.