Gold Market Outlook 17 October 2024

Gold Market Outlook 17 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 (XAU/USD) continues rosing on Wednesday, driven by falling US Treasury yields, which boosted demand for non-yielding assets. Traders are anticipating rate cuts from major central banks, with the European Central Bank (ECB) expected to act on October 17, as inflation shows signs of easing. This drop in yields provided a tailwind for gold, despite the recent strength of the US Dollar. 

Geopolitical uncertainty, particularly with the upcoming US elections, has further increased demand for gold as a safe-haven asset. Analysts from UBS anticipate heightened volatility until a new US administration is in place, suggesting gold and oil as effective hedges in the current environment. Additionally, traders using the CME FedWatch tool assign a 96% probability to a 25-basis-point rate cut by the Federal Reserve in November, contributing to gold’s bullish momentum. 

Market participants are also monitoring upcoming US Retail Sales, Industrial Production, and Initial Jobless Claims data for further market direction. Middle East developments and China’s stimulus program remain key areas of focus in the absence of major economic data releases. With safe-haven demand still strong and expectations for rate cuts growing, the outlook for gold remains bullish, though a lack of momentum could lead to short-term pullbacks. 

Gold hit its year-to-date (YTD) high of $… but failed to sustain the breakout, leaving $… as the next psychological resistance. Momentum remains positive, with the Relative Strength Index (RSI) at 65, indicating the potential for further gains. If gold clears the $… level, the path could open toward $…, followed by $… and $…. On the downside, if prices fall below $…, a retracement to $… could follow, with additional support at $… and the 50-day Simple Moving Average (SMA) at $…. 



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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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