Article by: ETO Markets

Gold price (XAU/USD) maintained its downward trend amid positive market sentiment and geopolitical risks, although dovish Fed expectations limited losses. A series of stimulus measures by China boosted global risk sentiment, driving a modest rise in the dollar and leading to safe-haven flows out of the gold market. However, expectations that the Fed will cut interest rates by another 50 basis points in November limited the upside for the dollar and provided support for gold. In addition, geopolitical risks in the Middle East remain tense, especially the escalation of the conflict between Israel and its Iranian Allies, which provides strong support for safe-haven assets gold. The market is focused on the upcoming speech of Federal Reserve Chairman Jerome Powell, which is expected to provide further guidance on the future path of interest rate cuts and the direction of gold.

From a technical point of view, the gold price is still maintained in the upward channel, despite the short-term correction, but the bullish trend is still intact. The lower support for gold is in the $… area, followed by the $… mark, and a break below this support could lead to further declines towards $… and the $…-… area. The Relative Strength Index (RSI) is close to overbought territory, which means there could be some profit-taking in the near term. On the upside, however, the $…- $… area is the primary resistance level, a break above which could challenge the psychological $… level and set the stage for a continuation of the long-term uptrend.