Article by: ETO Markets

On Thursday, gold reached a record high but did not breach the $2,700 mark, held back by uncertainties surrounding the upcoming US elections. Despite positive US economic data, the precious metal remains resilient. September Retail Sales rose by 0.4% month-over-month, exceeding estimates of 0.3% and outperforming August’s 0.1% gain. Initial Jobless Claims for the week ending October 12 were 241K, below expectations and down from the previous week’s 258K, signalling a strong labour market, which initially pressured gold prices. The 10-year Treasury yield climbed by eight basis points to 4.096%, adding further weight on bullion. Geopolitical risks from the Middle East and uncertainty surrounding the contested US election are also fuelling demand for gold. 

If the current upward trend continues, the XAU/USD could soon challenge the psychological $… mark, with further targets at $… and $…. However, if prices fall below $…, a retracement toward $… and possibly $… is expected, with the 50-day Simple Moving Average at $…, acting as additional support.