Today’s Gold Analysis Overview:
- The overall of Gold Trend: Strongly Bullish.
- Today's Gold Support Points: $4180 – $4130 – $4090 per ounce.
- Today's Gold Resistance Points: $4240 – $4280 – $4330 per ounce.
Today's Gold Trading Signals:
- Sell gold from the resistance level of $4280 with a target of $4060 and a stop-loss at $4330.
- Buy gold from the support level of $4160 with a target of $4300 and a stop-loss at $4120.
Technical Analysis of Gold Price (XAU/USD) Today:
Gold trading remains within a bullish channel, and the positive momentum has increased by the gold index successfully crossing the $4220 per ounce resistance level. This secures the bullish outlook for a longer period, especially since technical indicators still have room to move upward before reaching the overbought zone. The 14-day Relative Strength Index (RSI) is currently around a reading of 62 (approaching the overbought line of 70), and at the same time, the MACD indicator lines are steadily trending upward. There will be no change in the gold's direction without a return to the psychological level of $4000 per ounce; otherwise, the ascending trend will remain the strongest in the coming days.
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According to gold trading platforms, spot gold prices have maintained their gains above the $4200 per ounce peak. Recent economic data suggests that inflation does not appear to be a major obstacle preventing the Federal Reserve from raising US interest rates. According to the latest data from the Personal Consumption Expenditures (PCE) Index, the core PCE index, which excludes volatile food and energy prices and is the Federal Reserve's preferred inflation gauge, showed consumer prices rising 0.2% in September. This increase was roughly in line with economists' expectations.
Over the year, core inflation rose 2.8%.
Analysts note that while inflation remains above the Fed's 2% target, the latest data suggests that consumer prices are not accelerating. All eyes are on the Fed's meeting this week, with expectations that it will cut interest rates by 25 basis points. However, there is likely to be some debate—and perhaps even opposition—about inflation remaining flat and not approaching the 2.0% target anytime soon. Overall, this economic data has had little impact on expectations for US monetary policy. According to the CME FedWatch tool, markets are pricing in an 87% probability of a US interest rate cut this week.
Be aware that gold prices will likely remain range-bound, albeit with an upward bias, until markets and investors react to the Federal Reserve's announcement next Wednesday. The FOMC members will update their economic projections in conjunction with the interest rate decision, as the government shutdown prevented the release of any official data after September.
Trading advice:
Any sharp pullback in the price of gold in the coming period will be a good opportunity to consider buying again. However, never take risks and distribute the trading amount across several entry levels to ensure better results for your gold investment.
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