Long Rally, Profit-Taking Caution
Gold is approaching $3,860/oz, poised for its seventh weekly gain. The US shutdown has caused a data blackout, with the market and the Fed focusing on private sector releases, with weak recruitment and fewer layoffs. Market money has almost fully priced in a 25 bps cut by the end of the month and the possibility of another cut in December.
Structural support: central bank spending and ETF flows.
But be wary of a pullback. The rapid rally is overbought, and profit-taking has emerged after the record. A dovish narrative is maintaining the continued bullish trend; conversely, a stronger dollar or a more hawkish Fed tone could make gold vulnerable to a short-term correction. Take advantage of momentum, manage risk. (ads)
At the time of writing, the gold price was at $3,857.
- Buy if the price moves within the $3,862 range.
- Sell if the price moves within the $3,852 range.
Resistance 2: $3,873.
Resistance 1: $3,867.
Support 1: $3,857.
Support 2: $3,852.
Disclaimer:
This article is analytical in nature and is not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
