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Gold Daily | Gold Rises Amid Weaker Stocks, Geopolitical Tensions, and Fed Rate Cut Expectations

AInvestWednesday, Oct 16, 2024 8:00 am ET
1min read
【Latest Gold Price and Recent Trends】

Gold prices rose for a second day, reaching $2,679.12 per ounce, driven by weaker stocks and bond yields. Year-to-date, gold has surged about 30%, supported by election uncertainty and geopolitical tensions.

【Technical Analysis】

Gold shows strong bullish momentum, with resistance at $2,685.60 and $2,695.44. Key support lies at $2,655.00, and a break below this may lead to further declines.

【Market Sentiment and Economic Background】

The upcoming U.S. election and geopolitical tensions support gold's rise. Investors await U.S. data on retail sales and industrial production for Fed rate cut clues. Market expectations lean towards a 25 basis point rate cut at the November meeting.

【Analyst Opinions】

UBS analysts highlight a favorable environment for gold, suggesting it as an effective hedge in volatile markets. ANZ strategist Soni Kumari cites U.S. monetary policy easing as a key driver, with additional support from geopolitical tensions. Analysts forecast gold reaching new highs in the coming months based on strong investment demand and central bank actions.
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.