XAU/USD: Gold Prices Maintain All-Time High
Current Trend
Gold prices are developing short- and ultra-short-term upward momentum, showing moderate gains. Currently, prices are attempting to break out above 2735.00, trading near the recently updated all-time high.
Geopolitical tensions in the Middle East and Eastern Europe continue to support prices. Additionally, market participants are focused on the upcoming U.S. presidential election on November 5, as a victory for Donald Trump could lead to significant changes in foreign and domestic policy.
Investors are anticipating further monetary easing from major central banks worldwide, including the U.S. Federal Reserve (Fed). According to the CME Group’s FedWatch tool, there is about an 85% probability of a 25 basis point rate cut in November, while the remaining 15% of analysts predict that rates will be held steady. Last week, the European Central Bank (ECB) cut rates by 25 basis points but stated that future decisions would be based on economic conditions without providing specific guidance on future monetary policy.
On the other hand, the U.S. dollar received some support from last week’s retail sales data. September retail sales increased by 0.4% month-on-month, surpassing the forecast of 0.3%. The measure excluding automobiles accelerated from 0.2% to 0.5%, exceeding expectations of 0.1%.
Support and Resistance
- Resistance Levels: 2740.53, 2760.00, 2775.00, 2790.00
- Support Levels: 2720.00, 2700.00, 2685.56, 2670.00
Trading Tips
- Buy Position: If prices break above 2740.53, the target is 2775.00, with a stop loss at 2720.00. Duration: 1–2 days.
- Sell Position: If prices bounce at 2740.53 and fall below 2720.00, the target is 2670.00, with a stop loss at 2740.53.
