Gold Daily | Geopolitical Tensions and Technical Breakouts Propel Gold Recovery from Two-Month Low
Market BriefThursday, Nov 21, 2024 7:00 am ET
1min read【Latest Gold Price and Recent Trends】
International gold prices have shown signs of recovery after hitting a two-month low last week. Recently, increased geopolitical tensions, particularly involving Russia and Ukraine, have driven safe-haven demand, causing gold to rise for four consecutive days. Spot gold is up 0.75% at $2,670.
【Technical Analysis】
On the daily chart, gold continues to break key resistance levels. On the 4-hour chart, recent technical breakouts are clear, and a secondary uptrend line currently supports bullish momentum. On the 1-hour chart, $2,640 is a solid support area. Current targets are around $2,680 with further objectives at $2,708 and $2,726. Below, $2,621 provides significant support.
【Market Sentiment and Economic Background】
Investors are closely watching ongoing Fed statements for clues on interest rate directions. Despite higher-than-expected inflation data, market pricing still anticipates several rate cuts by 2025. Geopolitical risks, economic uncertainty, and a low-interest environment boost gold's appeal. Additionally, the dollar's halted rise and geopolitical concerns, such as the rejection of a UN Gaza ceasefire resolution by the US, contribute to market instability.
【Analyst Opinions】
Peter Spina, President of GoldSeek.com, advised against chasing price rallies, instead recommending buying on pullbacks, aiming for potential future price increases towards $3,000 by mid-next year. UBS and Goldman Sachs predict continued gold price increases due to central bank buying and geopolitical uncertainties. Kyle Rodda of Capital.com also supports long-term bullish trends for gold due to geopolitical concerns and expectations of lower real yields amidst a Fed easing cycle.
International gold prices have shown signs of recovery after hitting a two-month low last week. Recently, increased geopolitical tensions, particularly involving Russia and Ukraine, have driven safe-haven demand, causing gold to rise for four consecutive days. Spot gold is up 0.75% at $2,670.
【Technical Analysis】
On the daily chart, gold continues to break key resistance levels. On the 4-hour chart, recent technical breakouts are clear, and a secondary uptrend line currently supports bullish momentum. On the 1-hour chart, $2,640 is a solid support area. Current targets are around $2,680 with further objectives at $2,708 and $2,726. Below, $2,621 provides significant support.
【Market Sentiment and Economic Background】
Investors are closely watching ongoing Fed statements for clues on interest rate directions. Despite higher-than-expected inflation data, market pricing still anticipates several rate cuts by 2025. Geopolitical risks, economic uncertainty, and a low-interest environment boost gold's appeal. Additionally, the dollar's halted rise and geopolitical concerns, such as the rejection of a UN Gaza ceasefire resolution by the US, contribute to market instability.
【Analyst Opinions】
Peter Spina, President of GoldSeek.com, advised against chasing price rallies, instead recommending buying on pullbacks, aiming for potential future price increases towards $3,000 by mid-next year. UBS and Goldman Sachs predict continued gold price increases due to central bank buying and geopolitical uncertainties. Kyle Rodda of Capital.com also supports long-term bullish trends for gold due to geopolitical concerns and expectations of lower real yields amidst a Fed easing cycle.
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