Gold Daily | Gold Surges Above $2,710 Amid Geopolitical Tensions and Decreased Rate Cut Expectations

【Latest Gold Price and Recent Trends】

Gold prices surged above $2,710, marking the largest weekly gain in over a year due to increased safe-haven demand despite a stronger dollar and decreased expectations for a U.S. interest rate cut in December. Spot gold rose 1% to $2,705.06 an ounce, nearing a high of $2,710.19.

【Technical Analysis】

Gold's price movement aligns with a strong uptrend channel, indicating sustained buying interest. Immediate resistance is at $2,708.96, with further resistance at $2,726.69. Downside support levels are at $2,649.98 and $2,621.99. The RSI remains above the midline, supporting bullish momentum.

【Market Sentiment and Economic Background】

Geopolitical tensions, particularly the Russia-Ukraine conflict, have heightened safe-haven demand for gold. The expectation of a U.S. interest rate cut in December has decreased, with current odds at 56%. This geopolitical backdrop continues to bolster gold's attractiveness as a hedge against economic uncertainty and low interest rates.

【Analyst Opinions】

Analysts suggest that geopolitical risks and potential inflationary pressures due to U.S. policy changes under the incoming administration keep gold's outlook robust. The market anticipates gold testing $2,750 by mid-December. Analysts also note that while the strong dollar poses challenges, geopolitical factors remain the primary drivers of gold prices. Overall, while the dollar's strength and interest rate expectations weigh on gold, geopolitical tensions are the dominant force supporting the metal's rise.