Article by: ETO Markets

From a fundamental perspective, gold prices (XAU/USD) regained momentum after Wednesday's correction, mainly benefiting from the decline in US Treasury yields and a moderate correction in the US dollar. Although gold prices had previously fallen sharply by about $50 due to the strengthening of the US dollar and the rise in US Treasury yields, geopolitical risks in the Middle East and political uncertainty before the US presidential election on November 5 continue to support gold as a safe-haven asset. In addition, as the US presidential election approaches, market concerns about inflationary tariffs and widening fiscal deficits remain, which may drive market demand for gold in the future. However, strong data from the US economy and comments from Fed officials indicate that only a small interest rate cut may be made in the future, which will support the US dollar and put some pressure on the rise of gold. The market is currently focusing on global PMI data for more guidance on the global economy and short-term trends.

Technically, gold prices fell below the support of the rising channel in the short term, providing a new trigger signal for bearish traders. In addition, the negative oscillator on the hourly chart suggests that gold may continue to fall in the short term. However, before considering further shorting, we need to wait for gold to clearly break through the $… support level to confirm further correction space. The target support levels below are $… and $…-$…. On the other hand, the breakout level of the rising channel support (approximately $…-$…) has become a recent resistance level. If gold prices break through this area again and continue to rise, it is expected to challenge the $… resistance again and climb to the $…-$… area or even the $… round mark.