#MiddleEastCrisis #GoldTechnical Analysis#24K99 News On Monday (October 28), spot gold opened significantly lower with a gap down. In the early Asian session, the price once approached $2725 per ounce; however, it regained most of the lost ground during the day, closing above $2740 per ounce.
As of the Monday close, spot gold was reported at $2742.05 per ounce, with an intraday decline of nearly 0.2%; the lowest price during the session dropped to $2724.64 per ounce.
Analyst Christian Borjon Valencia from FXStreet pointed out that gold trading prices dipped slightly on Monday due to the drag of rising US treasury yields. The yield on the U.S. 10-year treasury notes continued to climb, rising by 3 basis points to 4.272%.
However, Valencia noted that political and geopolitical tensions persist. This limits the downward trend in gold prices.
After Israel launched missiles at several military targets in Iran, avoiding energy and nuclear facilities, geopolitical tensions once again became the focus over the weekend.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei stated on Monday local time that Tehran will "utilize all available tools" to respond to the attacks on Iranian military targets by Israel over the weekend.
Iran had previously downplayed the losses caused by Israeli airstrikes, emphasizing that Iran's air defense system should be effective in interception, hence only suffered 'limited' losses.
Baghaei said, "(Iran) will respond clearly and effectively to the Zionist regime using all available tools."
Baghaei also stated that the nature of Iran's response depends on the nature of the Israeli airstrikes, but he did not provide further explanation or reveal more details.
Iran's Supreme Leader, Khamenei, publicly addressed the Israeli attack on Iran for the first time last Sunday, emphasizing that the Israeli attack should neither be 'exaggerated' nor 'downplayed'.
Valencia stated that meanwhile, traders are also keeping an eye on the U.S. election on November 5th. According to the data from polling website FiveThirtyEight, Trump's chances of winning the U.S. election have increased to 52%, while Vice President Harris has a 48% chance of winning. Nevertheless, Harris continues to slightly lead in most national polls.
On the economic data front, on Tuesday, the U.S. will release the September JOLTS Job Openings report, expected to decrease from 8.04 million to 7.99 million. At the same time, the Conference Board will release the U.S. Consumer Confidence Index for October, which is expected to rise from 98.7 to 99.3.
Later this week, traders will also await the U.S. GDP, PCE Price Index, and Nonfarm Payrolls report for the third quarter, which may impact the policy outlook of the Federal Reserve.
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Valencia指出，金价上行趋势保持完好，在纪录高位附近没有出现反转模式，但已在2700-2750美元/盎司区域内盘整。若金价突破区间顶部，金价将立即瞄准2758美元/盎司的历史高点。一旦突破，下一目标将是2775美元/盎司区域，然后挑战2800美元/盎司。
(Spot gold daily chart source: FXStreet)
另一方面，Valencia补充道，如果卖家进场并将金价推低至2700美元/盎司以下，那么第一个Resistance将是9月26日的波动高点，该高点转为支撑位2685美元/盎司；随后是50日Simple Moving Average(SMA)支撑2603美元/盎司。
Valencia said that the momentum indicates, Relative Strength Index(RSIStill bullish, but has some downward movement, gold may consolidate. There was a chance for gold to hit a new all-time high before clearing the recent peaks in RSI. Otherwise, be cautious of a price correction.
