- Gold prices surged to around $2,685 per ounce today, Thursday, trading at record highs, as dovish expectations from major global central banks and a slight decline in bond yields boosted demand for the non-yielding bullion.
- The Federal Reserve is expected to cut US interest rates in its remaining decisions this year, with a 25-basis point cut in November becoming increasingly likely.
- Meanwhile, the European Central Bank is expected to implement another rate cut today, Thursday, while falling UK inflation indicates the possibility of a rate cut by the Bank of England next month.
- Many major central banks in Asia have also recently cut interest rates.
In addition, gold prices found support from uncertainty surrounding the US presidential election and renewed tensions in the Middle East, after Israel intensified airstrikes on Lebanon on Wednesday.
Top Forex Brokers
According to gold trading companies' platforms, gold index trend is up despite the US dollar price hovering around its highest levels in 11 weeks. According to the trading, the US dollar index stabilized above the resistance of 103.5 today, Thursday, to hover around its highest levels in 11 weeks as signs of strength in the US economy supported expectations that the Federal Reserve will take a more cautious approach to cutting US interest rates.
Meanwhile, markets had pointed to strong job and consumer inflation numbers for September, although soft economic indicators pointed to some slowdown. Now, investors are looking to the latest weekly jobless claims, retail sales, and industrial production data on Thursday to further guide price expectations.
Also, the prospects of Trump winning the November elections lifted the US dollar as his policies on tariffs, immigration and taxes are seen as inflationary, which could prevent the central bank from cutting interest rates further. The US dollar stabilized at its highest levels in several months against most major currencies, but lost some ground against the Australian dollar amid strong jobs data in Australia.
Gold Price Analysis and forecast Today:
According to gold analysts' expectations today, the general trend of gold prices is still strongly bullish. as we mentioned before, there will be no consideration for the technical indicators reaching strong overbought levels as much as focusing on the global geopolitical tensions that are increasing along with the continued abandonment of tightening by global central banks, which is a fertile environment for the recovery of gold prices. currently, considering that the calming of geopolitical tensions and the end of the wars in the Middle East will bring strong selling operations to gold prices to take profits. Technically, the closest resistance levels for gold are $2700 and $2725 per ounce, respectively.
Ready to trade our Gold monthly forecast? Here’s a list of some of the best XAU/USD brokers to check out.