Gold (XAU) Daily Forecast: Bullish Momentum Holds as Prices Near $2,740 Resistance

Market Overview

Gold (XAU/USD) surged to a near-record high on Tuesday, trading close to $2,736 per ounce, as rising global uncertainties continue to drive demand for safe-haven assets.

A combination of factors, including the upcoming U.S. presidential election and interest rate cuts by major central banks, has strengthened gold’s appeal.

Geopolitical tensions in the Middle East have also contributed to the market’s bullish sentiment toward the metal.

U.S. Dollar Strength Limits Gold’s Gains

Despite gold’s strong performance, the U.S. dollar has remained robust, posing a potential cap on gold’s upward momentum.

The U.S. dollar has been buoyed by a rise in Treasury bond yields, driven by market expectations of a smaller interest rate cut from the Federal Reserve in November.

U.S. Treasury yields have climbed to nearly three-month highs, and analysts have largely ruled out the possibility of a larger rate reduction, lending continued support to the dollar.

“The rise in bond yields and the dollar’s strength have put some pressure on gold prices, but the metal remains supported by broader market uncertainties,” said a senior market strategist.

Global Rate Cuts and Geopolitical Risks Drive Gold Demand

Gold’s rise has been further fueled by the monetary policies of major central banks. The European Central Bank (ECB) recently lowered interest rates for the third time this year, marking its first back-to-back rate cuts in over a decade.

Similarly, the Bank of England is expected to cut rates aggressively following weak inflation data, while the U.S. Federal Reserve is anticipated to ease borrowing costs further. These rate cuts increase gold’s attractiveness as an investment alternative.

The U.S. presidential election, just weeks away, has injected additional volatility into the market. Concerns about potential tariffs under a Trump victory and growing geopolitical tensions have intensified demand for safe-haven assets like gold.

Short-Term Forecast

Gold (XAU/USD) is likely to remain bullish as long as it stays above $2,724.37. A break above $2,740.43 could trigger further gains, while a drop below may signal selling pressure.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,733.78, up 0.52%, continuing its upward momentum within a well-defined channel. The immediate pivot point sits at $2,724.37, and as long as prices stay above this level, the bullish trend remains intact.

Key resistance levels to watch are $2,740.43, followed by $2,754.01, which could trigger further buying if breached. On the downside, immediate support is at $2,714.17, with further levels at $2,701.82 and $2,689.16.

The 50-day EMA at $2,718.46 is providing dynamic support, reinforcing the bullish sentiment. However, a break below $2,724 could signal a reversal, leading to sharper selling pressure. For now, the uptrend looks strong.