Article by: ETO Markets

Gold prices (XAU/USD) continued to firm this week, reaching record highs, largely driven by dovish Fed expectations and geopolitical tensions. Market expectations that the Federal Reserve will cut interest rates by another 50 basis points in November have undermined the dollar's ability to rebound, lending support to non-yielding gold. In addition, the intensification of conflicts in the Middle East, especially the Israeli air strikes on Lebanon, further boosted the demand for safe haven assets. Despite the optimism sparked by new stimulus measures in China, the global economic slowdown and political uncertainty in the US continued to drive funds into gold, reinforcing the upward momentum.

From a technical point of view, gold shows the potential for further gains after breaking out of the short-term upward channel. However, the Relative Strength Index (RSI) has exceeded 70 and is overbought, indicating that gold may face pressure to consolidate or pull back in the near term. If gold falls, support in the $… area may attract bargain buying, and a break below this area could lead to a further pullback to the $… or even $… area. At present, the gold price is close to the upward channel of about $…, if it continues to rise, it is possible to break through the resistance level of $…, the gold price is expected to usher in a new round of rise.