#GoldTechnical Analysis#24K99 News On Thursday (October 31st) in the Asian market session, spot gold was at $2788 per ounce, hitting a record high earlier. FXStreet's Chief Analyst Valeria Bednarik wrote an article analyzing the technical outlook for gold.
Bednarik wrote that despite being overbought, the price of gold continues to have a bullish momentum, with $2800 per ounce within reach. The United States will release the September PCE price index on Thursday.
On Wednesday, due to uncertainty surrounding the US presidential election boosting safe-haven demand, the price of gold surged nearly $13.
Spot gold closed up $12.78 on Wednesday, at $2787.13 per ounce. In the Asian market session on Thursday, the price of gold once touched $2790.11 per ounce, setting a new historical high.
Bednarik pointed out that the ongoing uncertainty surrounding the US presidential election results continues to boost gold demand. In a risk-averse environment, the demand for gold may continue to surpass the demand for the US dollar, and when the dollar weakens, the demand for gold also increases.
Daniel Pavilonis, a senior market analyst at RJO Futures, pointed out that with the usa presidential election approaching, there is high political uncertainty, the Federal Reserve is cutting interest rates, and the prospects for Russia and Ukraine are also very uncertain.
Pavilonis said: "There are too many factors that can drive gold prices higher, all negative news is the impetus needed to push gold prices up, and the next step could be a climb to $2850 per ounce."
peking time Thursday 20:30, the US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index for September, which is the inflation index preferred by the Federal Reserve, and is expected to trigger a major market movement.
According to authoritative media surveys, the PCE Price Index for September in the USA is expected to increase by 0.2% month-on-month and by 2.1% year-on-year.
The survey also indicates that the Core PCE Price Index in the USA is expected to increase by 0.3% month-on-month and by 2.6% year-on-year in September.
Short-term technical outlook for gold
Bednarik wrote that technically, based on the daily chart, despite being overbought, gold is still bullish. The price of gold continues to trade above all its moving averages, with the 20-day Simple Moving Average (SMA) currently around $2691.70 per ounce.Simple Moving AverageSMA) accelerating well below the short-term averages mentioned above, reflecting sustained buying interest. Finally,technical indicatorsEntering overbought territory, some loss of upward momentum, but far from showing exhaustion of the upward trend. Before a downward correction occurs, gold still has the potential to move higher to the high point.
Bednarik added that the 4-hour chart shows a sustained strong upward momentum. Technical indicators rebounded in the overbought zone after a slight correction, confirming that buyers continue to seize the opportunity of gold price decline. At the same time, the 20-period SMA is accelerating upwards, this moving average is still well below the current gold price level but above the 100-period SMA and 200-period SMA. Before the US election, gold is expected to continue to rise and break through $2800 per ounce.
(Source: FXStreet)
Valeria Bednarik provides the latest important gold price.Resistanceand resistance levels:
Support levels: $2,770.90 per ounce; $2,757.30 per ounce; $2,742.50 per ounce.
Resistance levels: $2,790.00 per ounce; $2,810.00 per ounce; $2,825.00 per ounce.
At 11:21 Beijing time, spot gold is trading at $2,788.14 per ounce.
