Gold prices have stabilized as traders shift their focus from the almost certain US interest rate cut this week to the monetary policy guidance for next year.
Gold prices were around $4,193 per ounce, having edged down slightly from the previous trading day. On Monday, U.S. Treasury yields rose as investors braced for a series of Treasury auctions and the Federal Reserve’s interest rate decision on Wednesday, which could shape policy expectations through 2026.
Swap traders expect the Federal Reserve to cut interest rates by 25 basis points, but now they tend to believe that there will be two more rate cuts by the end of 2026, while just a week ago, they predicted three cuts. Kevin Hassett, a leading candidate for the chairmanship of the Federal Reserve, said it would be irresponsible to set interest rate plans for the next six months now. Rising interest rates are usually bad for precious metals because they do not pay interest.
Since the beginning of this year, the price of gold has risen by approximately 60%, mainly due to the increased gold purchases by central banks around the world and the strong inflow of funds into exchange-traded funds (ETFs). Although the gold price has retreated from its peak of over $4,380 per ounce in late October, it has been supported by market expectations that the United States will further ease its monetary policy.
Analysts at BMI, a unit of Fitch Solutions, said in a report that any doubts about the Federal Reserve possibly pausing its recent interest rate cuts could put pressure on gold. They added that as the easing monetary policy cycle that began in 2024 starts to lose momentum, the gold price could fall below $4,000 per ounce.
Technical analysis:
The WeChat functions may be restricted from time to time. If you want to experience the plugin, please leave your contact information when adding a friend so that we can add you back easily!!!
Gold: The color combination we provided for our plugin yesterday was yellow and blue. Currently, after sweeping the liquidity around 4180, the price has started to rebound and stabilize. The intraday support and resistance level is around 4200. If it holds above this level, short-term buying can be considered. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and leave your contact information for us to get back to you.
Nasdaq: Yesterday, our plugin alert provided a yellow low-sweep liquidity operation suggestion, and the price movement basically conformed to our prediction. Currently, the price is near 25,650. We suggest long positions continue to hold. If the subsequent rebound recovers above 25,700, gradually advance protection. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and leave your contact information in the message for us to get back to you.
Crude oil: After the price converged yesterday, it failed to break through upward, and our blue buy stop was not triggered. Today, the price has resumed its oscillation pattern. In terms of operation, we still adhere to the strategy of buying after a pullback following a breakthrough. Wait for the signal to be confirmed before entering the market. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and leave your contact information in the message for us to get back to you.
Today’s key economic data and events to focus on:
23:00 U.S. JOLTS Job Openings for October (in thousands)
