Gold price have surged past $2,700, hitting a new record. This rise is due to major central banks lowering interest rates, with more cuts likely coming soon. Gold is also gaining because of ongoing conflicts in the Middle East and the uncertainty around the US Presidential election. These events are making investors turn to gold, which is seen as a safe option.
The US Dollar has also weakened slightly, helping push gold prices higher. Traders no longer expect the Federal Reserve to make big interest rate cuts in November. This might keep the dollar stable, slowing down further gold price increases.
Why People Are Still Buying Gold
Several reasons are keeping gold prices high. Recently, the European Central Bank cutting interest rates for the third time this year. The Federal Reserve and the Bank of England are also expected to lower borrowing costs. This is happening because of weak inflation data in the UK.
In the US, the race between Donald Trump and Kamala Harris is creating uncertainty, which is making investors look for safer options like gold. Conflicts in the Middle East, especially between Israel and Hezbollah, are also pushing up demand for gold.
US Economic Data and Its Impact on Gold Price
Recent reports show that US Retail Sales rose by 0.4% in September, which was higher than expected. Jobless claims also dropped, showing strength in the US job market. This suggests that the Federal Reserve may not cut rates as aggressively, which has boosted US bond yields and supported the dollar.
However, despite the strong US economy, gold prices remain high. Investors are still worried about global risks. Even though China’s economy grew by 0.9% in the third quarter of 2024, it had little effect on gold prices.
Gold’s Technical Analysis – Important Levels to Monitor
From a technical perspective, gold prices have moved above the $2,670-2,672 level, signaling potential for more gains. If prices drop, there is support at $2,660, with stronger support around $2,630. If gold falls below $2,630, it could drop further towards $2,600.
Conclusion
Gold remains a popular choice for investors, especially as central banks continue to cut interest rates. Ongoing global uncertainties like the US election and conflicts in the Middle East are also keeping demand for gold high. For more updates on gold prices, visit Daily Gold Signal. You can also check out the Daily Gold Update for the latest trends.
