October 23, 2024 03:04 GMT
GOLD: Fed, US Election & Middle East Uncertainties = Another All-Time High
GOLD
Gold is hovering just below its all-time high of 2749.03 in today’s Asia-Pac session. It closed 1.1% higher yesterday. Traders have been drawn to the market amid heightened uncertainty surrounding the tight U.S. presidential election and growing fears that escalating violence in the Middle East could lead to a broader conflict.
- Federal Reserve officials continue to opine on the path forward, with Fed Schmid favouring a slower pace of rate reductions and Fed Daly forecasting more cuts. Lower rates are typically positive for gold, which doesn’t pay interest.
- “Gold is one of this year’s strongest-performing commodities, with gains of more than 30 per cent so far supported by rate-cut optimism, strong central-bank buying and robust Asian purchases,” ING Bank NV wrote in a note. “Haven demand amid heightened geopolitical risks, as well as uncertainty ahead of the US election in November, have also supported gold’s record-breaking rally.” (per AFR)
- According to MNI’s technicals team, technicals for gold remain bullish, with sights on $2,767.1 and $2,785.3 next, Fibonacci projection points.
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