On Wednesday (October 30th), during the Asian market session, spot gold maintained its intraday upward momentum, with the gold price having already surpassed $2,780 per ounce.
The reasons to be bullish on gold remain solid, with buyers now aiming to test $2,800 per ounce.
Gold continued the upward trend from the previous trading day. Due to the uncertainty of conflicts in the Middle East and expectations of a Federal Reserve rate cut, the investment appeal of gold has been enhanced, with spot gold surging by more than $32 on Tuesday.
Spot gold closed sharply higher on Tuesday, up $32.30, or 1.2%, at $2,774.35 per ounce. On Wednesday, during the Asian market session, the gold price touched a record high of $2,782.17 per ounce at one point.
Chief market analyst Han Tan stated: "With the expectation of a Federal Reserve rate cut remaining unchanged, the gold price should maintain an upward bias, and may even touch $2,800 per ounce in the coming days."
The U.S. Bureau of Economic Analysis will release third-quarter Gross Domestic Product (GDP) data on Wednesday, which is the most important economic data of the day and is expected to trigger significant market movements.
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Current market expectations indicate that the U.S. third-quarter real GDP initial estimate on an annualized quarter-over-quarter basis is expected to grow by 3%.
FXStreet analyst Eren Sengezer pointed out that if the GDP data exceeds market expectations, the direct reaction may be to boost the U.S. dollar and cause gold prices to fall. On the other hand, disappointing GDP data (between 1% and 2%) could harm the U.S. dollar.
The Atlanta Fed's GDP Now model shows that the U.S. economy grew by 3.3% in the third quarter of 2024.
Short-term technical outlook for goldThe daily gold chart indicates that technical indicators support another wave of gold price increases. The 20-day Simple Moving Average (SMA) is accelerating upwards, currently at around $2,685.00 per ounce, still significantly below the current gold price level. At the same time, the longer-term moving averages are also gaining bullish traction, more than $300 below the current gold price level.
In the 4-hour chart, technical indicators also support the continuation of a bullish trend for gold prices. The indicators are steadily moving upward within the positive range, approaching overbought but still with room to rise. Additionally, the 20-period SMA has turned higher below the current gold price level, providing dynamic support near $2,740.60 per ounce. Meanwhile, the 100-period SMA and the 200-period SMA maintain a firm bullish slope at levels well below the aforementioned short-term moving averages.
Valeria Bednarik provides the latest key support and resistance levels for gold prices:
Support levels: $2,751.90 per ounce; $2,739.70 per ounce; $2,721.20 per ounce
Resistance levels: $2,790.00 per ounce; $2,810.00 per ounce
At 11:14 Beijing time, spot gold is reported at $2,781.10 per ounce.
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