October 24, 2024 03:13 GMT
GOLD: Sharp Pullback From Its All-Time High
GOLD
Gold is 0.3% higher in today’s Asia-Pac session, after closing 1.2% lower at $2715.55 on Wednesday, as the yellow metal has pulled back from the fresh record high of $2,758.5 it reached earlier in the session.
- Wednesday’s weakness in bullion coincided with another heavy session for US Treasuries. US 2- and 10-year yields finished the NY session 5bps and 4bps higher respectively. Lower rates are typically positive for gold, which doesn’t pay interest.
- Despite today’s profit-taking, following the recent run-up in prices, analysts at Standard Chartered expect further gains in the coming weeks, with price averaging $2,800 in Q4, and $2,900 in Q1 2025.
- In terms of the technicals, the recent extension in gold reinforces the bullish theme, according to MNI’s technicals team. Sights are on $2,767.1 next, a Fibonacci projection point, ahead of the $2,800.0 handle. Firm support is at $2,666.4, the 20-day EMA.
142 words