In the Middle East situation, gold technical analysis #24K99 news On Monday (September 23), spot gold continued to rise, once approaching $2635 per ounce, setting a new record high. Analysts point out that the expectation of a significant rate cut by the Fed, coupled with the increasingly tense situation in the Middle East, has stimulated the strength of the gold price.

Spot gold closed up nearly 0.3% on Monday, at $2628.38 per ounce. The highest price during the session reached $2634.88 per ounce, setting a new all-time high.

FXStreet analyst Christian Borjon Valencia pointed out that driven by the expectations of a Fed rate cut in November and the decline in U.S. Treasury yields, gold set a new all-time high.

According to cme's "FedWatch" tool, the probability of a 25 basis point rate cut by the Fed in November is 45.2%, while the probability of a 50 basis point cut is 54.8%.

Valencia added that the increasing tension between Israel and Hezbollah has enhanced the safe-haven appeal, potentially further boosting demand for gold.

Attacks by Israel on Hezbollah targets in Lebanon have resulted in nearly 500 deaths.

The Wall Street Journal reported that Lebanese authorities said Israeli attacks on Hezbollah in Lebanon have resulted in nearly 500 deaths, including dozens of women and children, with over 1,600 people injured. This is the deadliest wave of attacks since hostilities began last October.

(Screenshot Source: The Wall Street Journal)

According to the Associated Press, the Pentagon said on Monday that as violence in the Middle East increases, the United States will deploy more troops to the region.

The Lebanese Ministry of Public Health stated on the evening of the 23rd that the ongoing Israeli airstrikes in multiple locations in Lebanon have resulted in 492 deaths and 1645 injuries. The strikes have concentrated on towns and villages in southern Lebanon, the Bekaa Valley, and Baalbek, with 35 children and 58 women among the casualties.

The Israeli military stated that it carried out attacks on over 1300 locations targeting Hezbollah's military infrastructure, including cruise missiles, medium-range rockets, drones, and militants.

According to an informed Israeli official, Israel also carried out airstrikes on Beirut on Monday, targeting Hezbollah leader Ali Karaki, who is under US counterterrorism sanctions. Hezbollah stated that Karaki was not killed.

Israeli Defense Forces spokesperson Haggai said on the evening of September 23 that in the past 24 hours, the IDF carried out large-scale airstrikes on over 1300 'Hezbollah targets' in Lebanon, hitting more than 1300 'Hezbollah targets'.

How to trade gold?

FXStreet analyst Christian Borjon Valencia pointed out that the outlook for gold is biased towards an upward trend, but the rebound seems to have been excessive. The price of gold is still being suppressed within a $20 range.

Valencia stated that the relative strength index (RSI) has shifted to overbought, indicating that buyers are still in control of the market, but a pullback may occur.

Valencia pointed out that if the gold price breaks the high of September 18th at $2600 per ounce, a decline is expected. The key support levels to be tested next will be the low of September 18th at $2546 per ounce, followed by the 50-day simple moving average (SMA) at $2481 per ounce.

(Spot gold daily chart source: FXStreet)

Valencia added that conversely, if the gold price breaks the historical high of $2634 per ounce, traders may focus on the $2650 per ounce range, followed by the $2700 per ounce level.