GOLD Analysis
Afternoon: Gold Rebounds Above $2,720 Amid Geopolitical Uncertainty and Market Anticipation
Highlights:
- Gold rebounds above $2,720 amid geopolitical tensions and US election uncertainty.
- Strong US dollar and rising Treasury yields limit gold's upside potential.
- Central bank easing and safe-haven demand provide long-term support for gold prices.
Overview:
Gold prices surged above $2,720, recovering from a dip in the previous session, where the metal fell by more than 1% due to a stronger US dollar and rising Treasury yields. The pullback came as investors anticipated that the Federal Reserve would adopt a cautious approach to monetary easing. However, gold’s climb remains underpinned by its status as a safe-haven asset, bolstered by escalating geopolitical tensions in the Middle East. The ongoing military conflict has raised concerns about a broader confrontation, keeping gold demand robust among risk-averse investors.
In addition to geopolitical factors, the looming US presidential election continues to add uncertainty to the market, further supporting precious metals. As major central banks, including the European Central Bank and Bank of England, consider further monetary easing measures, the backdrop remains favorable for gold.
The technical outlook for gold indicates key support levels at $2,700, while resistance is pegged at $2,740. On the domestic front, MCX gold prices are likely to find support at ₹77,400, with resistance at ₹78,200.
Market Strategy: Actionable advice includes selling on a jump around $2,735-39, targeting $2,705, with a strict stop loss above $2,747..
Support and Resistance Levels:
