Gold Daily | Gold Prices Surge 5% Amid Russia-Ukraine Tensions and US Rate Cut Expectations

【Latest Gold Price and Recent Trends】

Gold prices rose by 1% to $2696.76, peaking at $2700 this week, driven by escalating Russia-Ukraine tensions and expectations of US interest rate cuts. This marks a 5% increase for the week, potentially the best weekly performance since early October 2023.

【Technical Analysis】

Gold is on the rise for the fifth consecutive day, nearing key resistance levels. The price is expected to oscillate between $2690 and $2715. Immediate resistance is at $2708.96, with further resistance at $2726.69 and $2746.74. Support levels are at $2649.98, $2621.99, and $2595.81. The 50-day and 200-day EMAs, at $2644.50 and $2650.97 respectively, underline the bullish momentum.

【Market Sentiment and Economic Background】

The ongoing Russia-Ukraine conflict, alongside geopolitical concerns, has bolstered gold's appeal as a safe haven. The Fed's potential interest rate cuts further support this sentiment. Market expectations for a 25 basis point cut in December are 55.9%, reduced from 72.2% a week ago, reflecting caution in the face of global uncertainties.

【Analyst Opinions】

Analysts highlight geopolitical tensions as a major driver, overshadowing factors like a strong dollar and reduced rate cut expectations. Continued escalation in Eastern Europe and potential US monetary policy shifts maintain gold's allure. Analysts caution that if the Fed pauses rate cuts in December, it could lead to a gold price pullback.