Gold Under Pressure, Is the Record Rally Coming to an End?
Gold prices fell to around $4,080 per ounce on Thursday (October 23rd), marking a third consecutive day of decline after hitting a record high in recent weeks. This decline was triggered by market optimism about a possible trade deal between the US and China, as well as President Trump's conciliatory statements toward China, which prompted investors to shift away from gold as a safe-haven asset. Despite the decline, gold prices are still up around 55% year-to-date, supported by hopes that the Federal Reserve will cut interest rates two more times before the end of the year.
On the other hand, geopolitical tensions remain a driving factor for gold prices, particularly after the US announced new sanctions against Russia and the postponement of talks between Trump and Putin due to Russia's rejection of a ceasefire in Ukraine. This situation keeps the market cautious, so despite increasing selling pressure, gold remains a preferred hedge amid global uncertainty.
The gold price at the time of this analysis was released was $4,094
- Buy if the price moves within $4,101
- Sell if the price moves within $4,087
Resistance 2: $4,115
Resistance 1: $4,108
Support 1: $4,080
Support 2: $4,073
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
