Article by: ETO Markets

Last Friday, the low U.S. consumer confidence index boosted gold prices, with the highest reaching $2,336. Concerns over European politics also limited the downside for gold. Although the Federal Reserve (Fed) has currently reduced the projected number of rate cuts to one, numerous weak economic data points indicate that U.S. inflationary pressures are easing. Therefore, the possibility of two rate cuts by the Fed in 2024 still exists, which has encouraged bullish bets on gold.

From a technical perspective, although the Relative Strength Index (RSI) at 48 indicates that gold prices still have room to decline, the XAU/USD price has been unable to break below $… , continuously providing confidence to gold buyers. Last week, gold bulls finally reversed a three-week downtrend. If gold prices break through the 50-day Simple Moving Average (DMA) resistance at $…, then it will only be a matter of time before they stay above the $… mark and challenge the historical high of $... Only when gold falls below $… will it attract new sellers to place bets, with $… and $… providing new support levels for gold.