#Gold Technical Analysis# 24K99 News. During the Asian session on Monday, September 23rd, spot gold suddenly surged in the short term, with the price just hitting a high of $2630.45 per ounce, setting a new historical record.

(Spot gold 5-minute chart Source: 24K99)

FXStreet analyst Christian Borjon Valencia pointed out that driven by further expectations of Fed rate cuts, the price of gold has skyrocketed to a historical high above $2600 per ounce. Escalating tensions between Israel and Hezbollah have led to a surge in safe-haven demand.

Gold continued its strong upward trend since last Friday. Spot gold soared $42.23 at the close of last week, up 1.64%, to $2620.91 per ounce.

Highly influential Fed Governor Christopher Waller stated on September 20th local time that he supports a 50 basis point rate cut at the last meeting because the decline in inflation was faster than expected. If the job market deteriorates, he may consider cutting rates by another 50 basis points.

Waller said, 'If the data starts to weaken and continues to weaken, I would be more willing to actively cut interest rates to bring inflation closer to our target. If the job market deteriorates, there may be another consideration to cut rates by 50 basis points.'

After Powell's speech, the futures market prices changed. According to the "Fed Watch" tool of the CME Group, traders currently predict a 51% probability of another 50 basis point rate cut at the November 6th-7th meeting, while the probability of a 25 basis point rate cut is 49.0%.

In the Middle East situation, the confrontation between the Israeli army and Hezbollah in Lebanon escalated again on September 22. According to the Israeli army's statement, from the 21st to the early morning of the 22nd, Hezbollah launched a total of about 150 rockets, missiles, and drones towards northern Israel and the occupied Golan Heights, resulting in multiple injuries, destruction of some houses, roads, vehicles, and multiple fires in the area.

The Israeli military has carried out airstrikes on more than 400 targets belonging to Hezbollah in southern Lebanon and north of the Litani River, destroying thousands of rocket launchers.

Naim Qassem, Deputy Leader of Hezbollah, stated on September 22 that Hezbollah has entered a new phase of fighting against Israel, calling it an 'open settlement battle.'

How to trade gold?

FXStreet analyst Christian Borjon Valencia pointed out that the price of gold continues to rise and reach new historical highs. The momentum favors buyers. The relative strength index (RSI) is rising in the bullish zone but is not yet in the overbought zone. Therefore, the path with the least resistance for the gold price is upward.

Valencia stated that the first resistance level for gold price will be $2650 per ounce, followed by the psychological level of $2700 per ounce.

However, Valencia warned that although all signs point to an upward trend, the rebound in gold price seems excessive, opening the door for a correction before aiming for a new historical high.

(Spot gold daily chart Source: 24K99)

Valencia said that if gold experiences a pullback, the first support level would be the $2600 per ounce level, followed by the September 18 volatility low of $2546 per ounce. If the latter is broken, the price of gold will target the August 20 high of $2531 per ounce, and then look to the September 6 low of $2485 per ounce.

At 11:28 Beijing time, spot gold was reported at $2630.32 per ounce.