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Gold Daily | Gold Dips Below $2640 Amid Strong Dollar, Market Eyes Fed Rate Cut and Key Support Levels

AInvestTuesday, Oct 8, 2024 8:00 am ET
1min read
【Latest Gold Price and Recent Trends】

Gold prices fell slightly, trading below $2640, due to a stronger dollar and anticipation of Fed minutes and economic data. The market no longer expects a 50 basis point rate cut by the Fed, with only a 25 basis point cut anticipated.

【Technical Analysis】

Gold prices are trading above the key pivot point of $2634.03, indicating potential bullish sentiment. Immediate resistance is at $2645.85. A break above this could test $2652.24 and $2659.48 levels. Support is at $2626.68, with risks of testing $2620.72 if breached.

【Market Sentiment and Economic Background】

The dollar's strength, driven by a strong US jobs report, places pressure on gold. Market expectations have shifted to a 25 basis point rate cut, reducing gold's appeal. Geopolitical tensions in the Middle East offer some support to gold as a safe haven. Concerns over China's economic slowdown further contribute to economic uncertainty.

【Analyst Opinions】

Peter Schiff predicts significant rises in gold prices due to dollar weakening and inflation risks, possibly reaching $26,000/oz or more. JPMorgan analysts highlight the "debasement trade" driven by a weaker dollar and lower bond yields as a continued support for gold prices. Analysts foresee ongoing central bank gold purchases, particularly with geopolitical tensions and upcoming US elections adding to the uncertainty.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.