Gold Market Outlook 21 October 2024

Gold Market Outlook 21 October 2024

Gold bars on a red background with a bar graph, representing the AI trading market and the gold trading news.

Article by: ETO Markets

From a fundamental perspective, the expectation of interest rate cuts by major central banks around the world is one of the key factors driving gold prices higher. The low interest rate environment reduces the opportunity cost of holding gold and increases the market demand for this non-yielding asset. At the same time, the continued escalation of geopolitical risks in the Middle East, especially the intensification of conflicts between Israel, Iran and Lebanon, as well as political uncertainty in the United States, have increased the safe-haven appeal of gold. Although the US dollar has rebounded recently, the possibility of further interest rate cuts by the Federal Reserve will put pressure on the US dollar, which will continue to benefit gold prices. In addition, China's stimulus policies will also help support global capital flows, indirectly boosting demand for gold.

On the technical side, gold prices successfully broke through the key resistance level of $… last week and hit a record high of $…-$… this week, confirming the upward trend. However, the relative strength index (RSI) on the daily chart has exceeded 70, indicating an overbought state, suggesting that consolidation or a small correction may occur in the short term. The current support levels are $…, $…-$…, and $…-$…, while the upside target is at a higher level after breaking through the historical high. Therefore, although the trend remains bullish, investors need to be cautious in the short term and wait for potential correction opportunities.



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The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
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Disclaimer

ETO Markets Limited ​is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023; ETO Group Pty Ltd., ABN 66 155 680 890, is a financial services company and regulated by Australia Securities & Investments Commission (ASIC), AFSL No. 420224.
The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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Disclaimer

ETO Markets Limited ​is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023; ETO Group Pty Ltd., ABN 66 155 680 890, is a financial services company and regulated by Australia Securities & Investments Commission (ASIC), AFSL No. 420224.
The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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