Gold Market Outlook 16 October 2024

Gold Market Outlook 16 October 2024

Gold bars on a red background with a bar graph, representing the AI trading market and the gold trading news.

Article by: ETO Markets

Gold prices have continued to strengthen this week on the back of geopolitical tensions and risk aversion in the market, hovering near three-week highs. The continued escalation of the Middle East conflict, with Israeli Prime Minister Benjamin Netanyahu rejecting a proposed ceasefire with Lebanon and Hezbollah threatening to expand the scope of its attacks, has intensified investor demand for safe havens, thus supporting the rally in gold. In addition, the US government's warning to Israel to speed up the delivery of humanitarian aid to Gaza or face possible sanctions, including a halt to arms transfers, also added to the market's nervousness.

On the other hand, the decline in US Treasury yields has also provided additional support for non-yielding gold prices. Investors' expectations for further Fed rate cuts have risen as US manufacturing data came in below expectations and lower oil prices eased inflationary pressures. However, increased expectations that the Fed will opt for a smaller rate cut (25 basis points) at the November FOMC meeting supported the dollar's strong performance. Although the strength of the US dollar has limited the room for further gains in gold, the price of gold has still shown resilience.

From a technical point of view, gold prices continue to receive support from the $… area, but face resistance near the all-time high of $…-…. A break above the psychological level of $… would set the stage for a multi-month uptrend. The technical indicators on the daily chart remain in positive territory, suggesting that gold prices still have the potential to rise further.

Conversely, if the gold price breaks below the $… support level, it may fall back to the $…- $… area. Even with further declines, the $… level is expected to attract bargain buying and act as a key support level. If this level is effectively breached, it could trigger a technical sell-off, leading to a deeper decline.

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The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
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Disclaimer

ETO Markets Limited is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023.


The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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Disclaimer

ETO Markets Limited is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023.


The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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