(
MENAFN- Daily Forex)
- Since the beginning of this week, the gold price has been on its broader upward trajectory, stabilizing around the resistance level of $2666 per ounce.
- This could provide strong momentum for bulls to make further progress towards the resistance of $2700 per ounce.
- This is happening while the gold price index direction is ignoring the strength of the US dollar after Trump's victory in the US presidential elections.
Gold as a Historical Safe Haven
It was natural, with the escalation of the war between Russia and Ukraine and the threat of its expansion and prolongation, that investors returned to buying gold as it is the ideal historical safe haven in times of political and economic uncertainty.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Central Bank Policies Affect the Gold Market
In addition to global geopolitical tensions, the gold bullion market will be affected by the future and expectations of global central bank policies, especially the US Federal Reserve. In this regard, markets continued to assess the expectations of US interest rates at the Federal Reserve and monitored the statements of bank officials throughout the week for new trading signals. In general, expectations remain weak, expecting a 25-basis point cut in US interest rates in December, which would reduce the alternative cost of holding non-interest-bearing gold Dollar Price and Impact on Current Gold Prices
It is noticeable that spot gold prices are relatively ignoring the strength of the US dollar, which is stable according to its index around its highest in two years, supported by expectations that Trump's policies may increase inflation rates, which may limit future US interest rate cuts. Currently, markets are focusing on the names of Trump's leadership team to predict whether the next US administration will fulfill its campaign promises. On the monetary policy front, mixed signals emerged from US Federal Reserve Governors Michelle Bowman and Lisa Cook, who offered divergent views on inflation and the possibility of further easing. On the other hand, the US dollar index benefited from renewed demand for it as a safe haven. The dollar's performance today will be affected by the announcement of the number of weekly jobless claims, US existing home sales, and statements by a number of US central bank officials.
EURUSD Chart by TradingViewGold Price Technical Analysis Today:
According to today's gold analysts' forecasts, the gold price has formed an upward channel on the daily chart, which will strengthen the bulls' control by moving towards resistance levels of $2675 and $2700 per ounce, respectively, and from the last and highest level, technical indicators will move towards strong overbought levels. The gold price will continue to interact with factors driving demand for it as a safe haven, the performance of the US dollar price, and the future policies of the Trump administration. Conversely, to abandon the current upward trend, the bears must first move towards the level of $2600 per ounce again Price Forecast Tomorrow:
The gold price is expected to have a bullish weekly close. To get gold signals and other free live forex signals directly on our website. Considering trading advice to avoid risk and activate take-profit and stop-loss orders to ensure the safety of your trading account from any sudden price reversals.
Ready to trade today's Gold forecast ? Here are the best Gold brokers to choose from.
MENAFN21112024000131011023ID1108912449
Comments
No comment