Gold Daily | Gold Subdued at $2,620 Amid Fed Rate Speculation and Geopolitical Tensions

【Latest Gold Price and Recent Trends】

Gold prices remain subdued at $2,620 as investors await the Federal Reserve's policy meeting minutes for hints on U.S. interest rates. Prices recently hit a two-week low, retreating from the September 26 peak of $2,685.42.

【Technical Analysis】

Gold is experiencing resistance and remains vulnerable to further declines. On daily charts, a potential support exists near the trendline, while on the 4-hour and 1-hour charts, prices are under pressure with key levels at $2,603.87 and $2,635.06 offering resistance.

【Market Sentiment and Economic Background】

The U.S. dollar index recently surged to a seven-week high, reducing gold's appeal. Investors are attentively watching upcoming CPI and PPI reports, which could influence gold's direction. The FedWatch tool indicates a strong likelihood of a 25 basis point rate cut, with inflationary data influencing future monetary policy.

【Analyst Opinions】

Matt Simpson of City Index suggests that gold's current pullback could attract buyers, indicating potential for price stabilization. He anticipates that only negative U.S. data could drive gold prices beyond recent highs. Analyst Haresh Menghani notes that geopolitical developments, such as a potential ceasefire involving Hezbollah, could further impact gold prices.

【Economic Background and Investor Behavior】

Gold ETFs saw inflows for the fifth consecutive month in September, primarily driven by North American funds seeking safe havens amid Middle Eastern tensions. In contrast, European funds experienced outflows, reflecting differing regional economic strategies. Overall, while short-term pressures are evident, geopolitical risks and economic indicators remain critical in shaping gold's future trajectory, with potential catalysts including U.S. inflation data and Fed policy signals.