Hi there,
Fundamentals :
Gold prices in Asian trade reached a near seven-month high, driven by signals from Federal Reserve officials suggesting an early pivot by the central bank. The decline in the dollar and retreating U.S. Treasury yields also benefited gold. With concerns about a global economic slowdown due to weak readings from Japan and the eurozone, safe haven demand increased. Spot gold rose by 0.1% to $2,044.08 an ounce, while gold futures for December increased by 0.2% to $2,044.20 an ounce. Although gold prices later decreased slightly due to a rise in the dollar, the expectation of a rate cut by the Federal Reserve in the first half of next year kept gold near its seven-month peak.
Technical Analysis :
Additionally, technical analysis suggests that the price of gold has the potential to rise to 2100, potentially finding resistance at that level as it aligns with the golden fib ratio for a potential retracement in continuation of the bullish trend. It is important to monitor the price as it may pull back to the extremes of the demand zone before resuming its upward movement. However, if the price drops below 1900, it will invalidate the setup.
Summary :
Overall, the market sentiment has shifted towards a bullish outlook for gold, as indicated by the highest prices in gold futures since May.
Khiwe
Fundamentals :
Gold prices in Asian trade reached a near seven-month high, driven by signals from Federal Reserve officials suggesting an early pivot by the central bank. The decline in the dollar and retreating U.S. Treasury yields also benefited gold. With concerns about a global economic slowdown due to weak readings from Japan and the eurozone, safe haven demand increased. Spot gold rose by 0.1% to $2,044.08 an ounce, while gold futures for December increased by 0.2% to $2,044.20 an ounce. Although gold prices later decreased slightly due to a rise in the dollar, the expectation of a rate cut by the Federal Reserve in the first half of next year kept gold near its seven-month peak.
Technical Analysis :
Additionally, technical analysis suggests that the price of gold has the potential to rise to 2100, potentially finding resistance at that level as it aligns with the golden fib ratio for a potential retracement in continuation of the bullish trend. It is important to monitor the price as it may pull back to the extremes of the demand zone before resuming its upward movement. However, if the price drops below 1900, it will invalidate the setup.
Summary :
Overall, the market sentiment has shifted towards a bullish outlook for gold, as indicated by the highest prices in gold futures since May.
Khiwe