Gold Prices Ascend to Seven-Month High Amid Dovish Fed Sentiment

Gold‘s trajectory remains emphatically bullish as it extends its upward march for the fifth day, touching a seven-month zenith at the $2,052 region during the Asian session. This ascent is catalyzed by a pervasive softening of the US Dollar, spurred by the market’s dovish readjustment of Federal Reserve rate hike expectations.

The consensus now leans towards the Fed halting interest rate increases, with futures markets pricing in substantial rate reductions by December 2024. This outlook is underpinned by a disappointing US bond auction and the consequent drop in Treasury yields, which saw the 10-year note plummet to a mid-September nadir, further diminishing the Dollar and propelling GOLD demand.

Amid these contrasting Fed perspectives, geopolitical developments like the Israel-Hamas ceasefire extension exert a more muted influence on gold’s traditional safe-haven status. Market focus is now pivoting to the upcoming preliminary US GDP report, anticipated to exhibit a robust 5% expansion in Q3, and the closely monitored US Core PCE Price Index, due Thursday, for further economic cues.

Gold Technical Outlook

Today’s GOLD price exhibits bullish momentum, nearing the anticipated target of $2,055.00 and challenging the resistance of the short-term bullish channel. The support from the EMA50 suggests potential for further gains, aiming for $2,075.25, provided the resistance around $2,047.00 is decisively breached.

Otherwise, a retest of the pivotal $2,009.30 support might precede any renewed bullish efforts. Today’s forecasted trading range lies between $2,030.00 support and $2,065.00 resistance, with the prevailing trend decidedly bullish.