Article by: ETO Markets

Gold prices have approached the $2,600 mark this week on the back of a weaker dollar and expectations of a rate cut by the Federal Reserve, and are poised for further gains. The Federal Reserve slashed interest rates by 50 basis points on Wednesday and is expected to cut them again before the end of the year, a policy that has boosted demand for gold. In addition, concerns about the global economic slowdown, especially the uncertain economic outlook in the United States and China, coupled with geopolitical risks in the Middle East, further support gold as a safe-haven asset.

Despite the increased risk appetite in the market, gold prices remain supported by the dovish stance of the Federal Reserve and global political instability. Asian central banks and Russia have continued to buy gold to reduce their reliance on the dollar, which has also fueled expectations of higher prices. From a technical point of view, gold is expected to break through the key resistance level of $… and continue to climb towards the $…- $… area. A break below $…-… could lead to a pullback to the psychological level of $…, but the overall uptrend remains solid.