Gold Price Hits New High: Global Tensions & Fed Support!
Hello, wonderful friends!
Currently, the price of gold has reached a record high, surpassing the $2,700/ounce mark, strongly boosted by escalating geopolitical tensions in the Middle East, especially between Israel and armed groups in the region. This instability has caused investors to flock to safe-haven assets such as gold, to protect their assets amid continued global uncertainty.
In addition, expectations that the US Federal Reserve (FED) will cut interest rates at its meeting in November have also contributed to the increase in gold prices. When interest rates fall, the opportunity cost of holding gold decreases, making this asset more attractive. Many central banks and gold-backed ETFs have increased their holdings of gold, creating further upward momentum for this precious metal.
The current trend, along with support from the EMAs at 34.89, gives us a bullish outlook for gold. Gold is currently trading near the 34 EMA support at 2750 with current resistance at $2783. A break above the $2783 resistance would open the doors for further gains in gold, as shown on the 1-hour chart.
Currently, the price of gold has reached a record high, surpassing the $2,700/ounce mark, strongly boosted by escalating geopolitical tensions in the Middle East, especially between Israel and armed groups in the region. This instability has caused investors to flock to safe-haven assets such as gold, to protect their assets amid continued global uncertainty.
In addition, expectations that the US Federal Reserve (FED) will cut interest rates at its meeting in November have also contributed to the increase in gold prices. When interest rates fall, the opportunity cost of holding gold decreases, making this asset more attractive. Many central banks and gold-backed ETFs have increased their holdings of gold, creating further upward momentum for this precious metal.
The current trend, along with support from the EMAs at 34.89, gives us a bullish outlook for gold. Gold is currently trading near the 34 EMA support at 2750 with current resistance at $2783. A break above the $2783 resistance would open the doors for further gains in gold, as shown on the 1-hour chart.
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