Gold prices have reached a new all-time high, driven by expectations of further Fed rate cuts, stimulus measures in China, and rising geopolitical tensions in the Middle East.
Fed Rate Expectations
The Federal Reserve (Fed) is expected to cut interest rates by 50 basis points (bps) in November, according to the CME Fedwatch tool. Recent comments from Fed officials suggest a dovish stance.
China Stimulus
The People’s Bank of China (PBoC) announced a significant stimulus package, including interest rate cuts and increased liquidity. This is aimed at supporting the Chinese economy and boosting confidence.
Geopolitical Tensions
Escalating tensions in the Middle East, particularly between Israel and Lebanon, are increasing safe-haven demand for gold.
Technical Analysis
Gold prices have entered the overbought zone, according to the Relative Strength Index (RSI). This suggests a potential short-term correction. However, the long-term trend remains bullish, with potential targets at $2,650 and $2,700.
