24K99 News Gold closed at $2721 on Friday, October 20th. This week, driven by increased global uncertainty and expectations of monetary easing, the price of gold reached a historic high, surpassing $2700 for the first time. Against the backdrop of geopolitical and economic turmoil, investors have been buying gold in large numbers, leading to a surge in safe-haven demand. With the Fed expected to cut rates in November, the non-yielding appeal of gold has increased, supporting further price increases.

(Source: FX168)

The ongoing conflicts in the Middle East, especially between Israel and Hezbollah, are key factors driving the rise in gold prices. With Hezbollah increasing its military involvement, the unstable situation in the region has deepened, prompting investors to seek gold as a safe-haven asset.Its price has soared to a historic high, closely related to market expectations of interest rate cuts by the Federal Reserve..

The unresolved conflicts in the Middle East and escalating geopolitical risks have contributed to a new high in gold prices, with gold hitting a historical high of $2720 on Friday.

Expectations of continued loose monetary policy also played a significant role in last week's rebound.

The market generally expects the Federal Reserve to cut interest rates in November, with a 92% chance of a 25 basis point rate cut. Loose monetary policies often make non-yield assets like gold more attractive because they reduce the holding of gold.opportunity cost.

The European Central Bank has cut interest rates for the third time this year and is expected to further ease policies, further enhancing the demand for gold as a hedge against uncertain economic conditions, strengthening the bullish momentum of gold.

Despite the bullish trend of gold, the US economic data is mixed. Retail sales grew by 0.4% in September, exceeding expectations, indicating that consumer spending continues to remain resilient. However, the real estate market showed weakness, with declines in new home construction and building permits, intensifying speculation about the Federal Reserve maintaining a dovish stance.

The combination of strong consumer spending and weak housing indicators is expected to support gold, as investors remain cautious about the overall economic outlook.

In addition to geopolitical risks, investors are closely watching the upcoming US presidential election, further intensifying market uncertainty. Safe-haven assets like gold remain a focus of the market, with analysts expecting gold prices to rise further in the short term.

"According to market forecasts, driven by geopolitical tensions and economic factors, gold prices could rise to $3,000 per ounce in the next 6 to 12 months," James mentioned.

After reaching a historic high, gold is expected to continue to rise, with ongoing geopolitical tensions and expectations of monetary easing supporting the price of gold. Although there may be some profit-taking in the short term, the overall outlook remains optimistic, and strong demand may persist.

Key factors to watch include the progress of the Middle East conflict and US economic data, both of which could push up the price of gold.

James concluded by saying, "In the coming days, the price of gold may test the resistance level near $2750."

"If safe-haven demand remains strong, it may further increase."

(Source: FXEmpire)