Article by: ETO Markets
Gold（XAU/USD) continues its upward trajectory, trading back in the $2,730s after a brief pullback. The recent rally is primarily fueled by increased safe-haven demand amid the conflict in the Middle East. However, this rally has moderated as global bonds are selling off, driven by a revision in expectations for global interest rates.
Unexpectedly strong US economic data has tempered these expectations, reducing the likelihood of a significant 50 basis point cut by the Federal Reserve. This shift in outlook diminishes gold's appeal as a non-yielding asset, although the ongoing geopolitical tensions continue to bolster demand for gold as a safe haven.
The upcoming BRICS summit in Russia is also generating interest in gold, particularly discussions around de-dollarization and the potential for a new gold-backed currency. This development could further enhance gold's appeal and lead to potential price increases.
After successfully breaching the $… mark, gold is now targeting $…. The Relative Strength Index (RSI) indicates an overbought condition, suggesting that long holders should be cautious about adding to their positions due to an increased risk of a pullback. On the downside, key support levels are identified at $… and $…, as seen in the September high.
