What news has recently affected the trend of gold? Will gold break through the 2000 mark and peak in the mid-term?
In early trading in the European market on Monday (October 30), gold fell to $1,993 and experienced a short-term correction. Although the continued escalation of conflict in the Middle East supports bullish buying, technical analysts say that gold prices have entered a cautious bullish mode. Precious metal investors will focus on the Federal Reserve's decision, worried that the Fed may maintain a hawkish tone due to sudden calls for interest rate hikes. Gold prices remain resilient in the $2,000 range, driven by geopolitical tensions in the Middle East. Meanwhile, investors are proceeding cautiously as they await the Federal Reserve's upcoming policy meeting. Israeli air strikes near Gaza have intensified conflict in the Middle East, prompting investors to turn to safe-haven assets. Gold prices have previously breached the key $2,000 mark for the first time since mid-May.
Amid this uncertainty, market participants are closely watching the Federal Reserve’s policy announcement on Wednesday, which could have a significant impact on gold prices.
Recent U.S. economic indicators have shown a surge in consumer spending, keeping monthly inflation at warm levels. A Reuters poll showed that rising inflation, currently hovering above the Fed’s 2% target, remains a global economic risk next year. While gold can serve as an inflation hedge, rising interest rates could dampen its appeal. Market analysts pointed out that despite strong economic data, the Federal Reserve is likely to maintain a hawkish tone, especially given the continued tensions in the Middle East. All eyes are on the Fed’s timing, with rate hikes likely to impact borrowing costs but also potentially boost returns on interest-earning assets. Gold prices appear to have stabilized in the $2,000 range, largely due to geopolitical risks and inflation concerns. However, the Federal Reserve’s upcoming policy meeting is an important variable. If central banks choose to raise interest rates, the move could dampen gold’s shine. Nonetheless, in the short term, the outlook for gold remains cautiously bullish.
10.30 gold market trend analysis:
Gold technical analysis: From the perspective of the daily line structure, after the daily line consolidates and gathers momentum on the consecutive star K lines, it then closes in the positive line and continues to rise, and the daily line is bullish. The weekly positive trend has been strong. The previous retracement low serves as the critical point for bulls this week, and the short-term rise will further continue. The next goal is most likely to challenge the previous high.
The 4-hour chart gathers momentum around the middle track, and then cooperates with the big positive line to pull up and close at a high level. The bulls consolidated strongly instead of correcting the correction. The previous low of 1953 served as the rising low of the second wave. After pushing the high to break through, the second wave rose together. The high of 1990-1995 was converted into today’s support. The high trend will continue at the beginning of the week. It is expected that If the Asian market pulls back slightly, the European market will move higher. After the consolidation and correction in the 1-hour chart, there was a continuous positive rise, pulling up and closing at a high level. The main idea is to go long on dips to support the top-bottom transition.
Judging from the back-and-forth fluctuations for several consecutive days last week, there is no doubt that in the short-term, as long as the market shows signs of a washout and decline, it is a good opportunity for us to further cover our positions and go long. Under the current disruption of the Palestinian-Israeli conflict and the back-and-forth of the United States, gold itself I’m afraid Zhou will still get out of this back-and-forth market! And after last Friday’s rebound, gold will probably continue to hover above the 2000 mark and continue to rise. Our current primary support for short-term long positions below has also reached the 1996-2000 mark above, and currently Looking at it, if there is demand for a sharp correction in the market again tonight, and even falls below the 1996 mark to the 1990 mark below, as long as the current Palestinian-Israeli conflict still exists, even if the market pulls back to a lower point, we will still focus on long positions in the short term. ! At the same time, if the suppression of the stall line is effective, and after three consecutive weeks of K, the 2010 stagflation has continued for three weeks, and the amplitude is close to the upward trend of more than 200 US dollars; we still need to pay attention and beware, we must Be careful of pullbacks and high slumps; overall, in today’s short-term operation of gold, Jin Shengfu recommends to focus on longs on callbacks, supplemented by shorts on rebounds. The top short-term focus is on the 2010-2015 first-line resistance, and the bottom short-term focus is on the 1993-1997 first-line support. Friends, you must keep up the pace. It is necessary to control positions and stop loss issues, set stop losses strictly, and never resist orders. The recent market turmoil has been relatively large, and opportunities and risks coexist. Control risks and gain profits.
Disclaimer: Views shared are for reference only and do not constitute investment advice. Investment involves risks, and you must be responsible for any profits or losses.