#Gold Technical Analysis#24K99 News On Tuesday (September 24th) during the Asian session, spot gold continued its rebound trend, with the current price near $2633 per ounce, close to the historical high reached on the previous trading day. FXStreet analyst Haresh Menghani wrote on Tuesday, analyzing the technical trend of gold prices.

Menghani wrote that with a slight overbought situation on the daily chart, after gold prices hit a historical high yesterday, the bulls turned cautious. Before continuing the recent upward trend, gold prices may consolidate or pull back.

Spot gold closed up nearly 0.3% on Monday, at $2628.38 per ounce. Gold prices hit a high of $2634.88 per ounce in Monday's session, setting a new historical high.

Menghani pointed out that due to market expectations of the Federal Reserve adopting more aggressive easing policies, which limits the recovery momentum of the US dollar, thereby cushioning the downward momentum of gold prices.

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%.

In addition, Menghani added that ongoing geopolitical risks triggered by continuous conflicts in the Middle East, uncertainties in US politics ahead of the November elections, concerns about economic slowdown should support safe-haven gold prices. The path of least resistance for gold prices is still upwards.

Israel launched airstrikes on Monday on so-called Hezbollah weapon bases in southern and eastern Lebanon, causing nearly 500 deaths, increasing the risk of wider conflicts in the Middle East region.

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.

As a traditional geopolitical and economic uncertainty hedge tool, gold is expected to have its best annual performance in 14 years. According to data from the World Gold Council, global physically-backed gold ETFs saw a net inflow of 3 tonnes last week.

The Latest Technical Analysis of Gold

Menghani pointed out that from a technical perspective, the recent breakthrough of the $2600 per ounce mark in gold price may be seen as a new trigger by bullish traders. However, the Relative Strength Index (RSI) on the daily chart is holding above the 70 level, warranting caution. Therefore, it would be prudent to wait for some recent consolidation or moderate pullback before preparing for the next upward move in gold price.

Menghani added that at the same time, any corrective decline in gold price may attract new buyers near the $2600 per ounce level; once below this level, gold price could drop to the $2560 per ounce level region.

Following this, the next important support for gold price is around the $2535-2530 per ounce region, followed by the psychological level of $2500 per ounce. A break below the latter may favor put trades in the near term and pave the way for a meaningful downside in gold price.

At 11:32 Beijing time, spot gold was trading at $2632.91 per ounce.