Gold Daily | Gold Dips Below $4,000 but Poised for Eighth Weekly Gain Amid Global Uncertainties

【Latest Gold Price and Recent Trends】

Gold has slightly retreated to $3,970.11 per ounce after surpassing $4,000. It remains on track for an eighth consecutive weekly gain, driven by global uncertainties and expectations of Fed rate cuts.

【Technical Analysis】

On the daily chart, gold has seen a profit-taking dip. A steep uptrend line on the 4-hour chart supports bullish momentum, while bears eye a break below this trend. On the 1-hour chart, $4,000 acts as minor resistance where bears may intervene.

【Market Sentiment and Economic Background】

Gold has surged 52% this year, breaking $4,000, with ETF inflows, central bank purchases, and geopolitical risks as key drivers. Central banks' gold reserves increased to $4.64 trillion. Gold's liquidity is vital in volatile times, with September's daily trading hitting $388 billion. The U.S. government shutdown threat adds to gold's appeal.

【Analyst Opinions】

Analysts like UBS's Ulrike Hoffmann-Burchardi expect gold to rise to $4,200 due to ongoing uncertainties. Alex Ebkarian of Allegiance Gold notes the $4,000 level prompts profit-taking but sees gold in a long-term bull cycle. A potential Fed rate cut could further boost prices.

【Market Sentiment and Economic Background】

China is leveraging gold's surge to lessen reliance on U.S.-led markets, aiming to elevate its financial system. Beijing has increased its gold reserves, now the sixth-largest globally, as part of a strategy to diversify reserves amidst geopolitical shifts. China's efforts to centralize gold trading further position it against traditional financial centers.