Gold price analysis (XAU/USD) maintains its bullish momentum during the early European session, trading just below a recent four-day high around $2,657-$2,658. This rally reflects ongoing demand for the precious metal as investors seek safe-haven assets amidst global uncertainties. This article explores the key drivers behind gold’s price movements, technical levels to watch, and market expectations.
Key Drivers Influencing Gold Price
Global Economic Concerns Boost Safe-Haven Demand
Concerns about US President-elect Donald Trump’s proposed trade tariffs and the continued Russia-Ukraine conflict have led to increased uncertainty. These factors encourage investors to shift their focus toward gold, a traditional hedge during periods of global turmoil.
Weak US Dollar and Treasury Yields Support Gold
Depressed US Treasury bond yields, combined with a dip in the US Dollar to a two-week low, further boost gold prices. Reduced bond yields make non-yielding assets like gold more attractive, while a weaker dollar lowers the cost of gold for holders of other currencies.
Inflation Expectations Add to the Appeal
Signs that progress in reducing US inflation has stalled in October contribute to speculation that the Federal Reserve might adopt a cautious approach to further rate cuts. This uncertainty about monetary policy lends additional support to the precious metal.
Market Outlook and Technical Analysis
Gold Price Finds Key Support Near $2,650
The $2,650 level serves as an important support point for gold prices. Any decline below this level could push the price toward the $2,620-$2,605 range, marking a potential bearish trend.
Resistance Levels to Watch
A break above the $2,664 resistance level could pave the way for additional gains. A sustained move above this level could lead to $2,677 or even $2,700, representing significant Fibonacci retracement points.
Bullish Indicators Persist Despite Market Caution
Gold remains resilient despite market expectations for slower rate cuts. Investors appear optimistic about its long-term stability amidst fluctuating monetary policies and geopolitical risks.
What’s Ahead for Gold Price?
Without major economic data releases scheduled for Friday and shortened US stock market hours due to the Thanksgiving holiday, gold prices are likely to trade within the current technical ranges. Traders will keep an eye on future economic indicators and geopolitical developments.
Conclusion
Gold price analysis continues to exhibit strength, driven by safe-haven demand and subdued US Dollar performance. While resistance levels near $2,664 may challenge the bullish trend, strong support at $2,650 provides a solid foundation for further gains. For regular updates on gold prices and technical analysis, check Daily Gold Signal and Daily Gold Updates.
