Gold Daily | US Election and Fed Rate Cut Expectations Boost Safe-Haven Demand for Gold Amid Tensions
Monday, Nov 4, 2024 7:00 am ET
1min read 【Latest Gold Price and Recent Trends】
Gold prices held steady at $2,740, with strong selling last Thursday post-US data indicating robust economic conditions. The upcoming US presidential election and potential Fed rate cuts are key influences.
【Technical Analysis】
Gold is near $2,730 support. A break below could lead to further bearish action, targeting the primary trend line. Buyers aim for a recovery above $2,760 for new highs.
【Market Sentiment and Economic Background】
Uncertainty from the US presidential election and Fed policy decisions creates a favorable environment for gold. Geopolitical tensions, particularly in the Middle East, bolster safe-haven demand. A potential rate cut by the Fed this week, combined with ongoing geopolitical tensions and the election's uncertainty, may continue to support gold's appeal as a safe investment.
【Analyst Opinions】
Analysts are observing that although gold maintains an uptrend amid Fed easing cycles, repricing of rate cut expectations could trigger pullbacks. However, if the Fed's response pattern remains the same, the upward trend should persist. Market strategist Tim Waterer suggests election-induced uncertainty could benefit gold, particularly if results are delayed or Congress remains divided, driving safe-haven flows. Overall, gold's demand trend remains robust, especially with institutional investors seeking safety amidst geopolitical and economic uncertainty. As geopolitical tensions rise, along with potential Fed rate cuts, gold is expected to remain supported.
Gold prices held steady at $2,740, with strong selling last Thursday post-US data indicating robust economic conditions. The upcoming US presidential election and potential Fed rate cuts are key influences.
【Technical Analysis】
Gold is near $2,730 support. A break below could lead to further bearish action, targeting the primary trend line. Buyers aim for a recovery above $2,760 for new highs.
【Market Sentiment and Economic Background】
Uncertainty from the US presidential election and Fed policy decisions creates a favorable environment for gold. Geopolitical tensions, particularly in the Middle East, bolster safe-haven demand. A potential rate cut by the Fed this week, combined with ongoing geopolitical tensions and the election's uncertainty, may continue to support gold's appeal as a safe investment.
【Analyst Opinions】
Analysts are observing that although gold maintains an uptrend amid Fed easing cycles, repricing of rate cut expectations could trigger pullbacks. However, if the Fed's response pattern remains the same, the upward trend should persist. Market strategist Tim Waterer suggests election-induced uncertainty could benefit gold, particularly if results are delayed or Congress remains divided, driving safe-haven flows. Overall, gold's demand trend remains robust, especially with institutional investors seeking safety amidst geopolitical and economic uncertainty. As geopolitical tensions rise, along with potential Fed rate cuts, gold is expected to remain supported.
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