XAUUSD remains within an ascending channel
Technical Perspective:
On the daily timeframe, XAUUSD pared recent losses. The price is approaching the 2700 resistance, where a reversal below this level could prompt a decline toward the ascending channel's lower bound and 2520 support. Conversely, a break above 2700 could lead to a further rise toward its record high near the 2800 resistance zone. The price also holds above the Ichimoku Cloud, indicating the potential for further gains.
Fundamental Perspective:
Gold prices have recently recovered, rising above 2650 USD per ounce, driven by a flight to safety amid increasing geopolitical tensions, including the escalation of the Russia-Ukraine war.
Additionally, markets are focusing on the Fed's upcoming rate decisions, with a slight majority anticipating a 0.25% rate cut in December. Lower interest rate prospects would reduce the opportunity cost of holding gold, a non-yielding asset. However, concerns over inflation have led investors to trim expectations for aggressive rate cuts in the coming months. While gold remains attractive during periods of crisis, risks of prolonged Fed tightening could temper its upward momentum.
Author: Li Xing Gan, CMT, CFTe,
Financial Market Strategist Consultant to Exness
On the daily timeframe, XAUUSD pared recent losses. The price is approaching the 2700 resistance, where a reversal below this level could prompt a decline toward the ascending channel's lower bound and 2520 support. Conversely, a break above 2700 could lead to a further rise toward its record high near the 2800 resistance zone. The price also holds above the Ichimoku Cloud, indicating the potential for further gains.
Fundamental Perspective:
Gold prices have recently recovered, rising above 2650 USD per ounce, driven by a flight to safety amid increasing geopolitical tensions, including the escalation of the Russia-Ukraine war.
Additionally, markets are focusing on the Fed's upcoming rate decisions, with a slight majority anticipating a 0.25% rate cut in December. Lower interest rate prospects would reduce the opportunity cost of holding gold, a non-yielding asset. However, concerns over inflation have led investors to trim expectations for aggressive rate cuts in the coming months. While gold remains attractive during periods of crisis, risks of prolonged Fed tightening could temper its upward momentum.
Author: Li Xing Gan, CMT, CFTe,
Financial Market Strategist Consultant to Exness
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