Gold Steady Above $2,730 as US Election and Middle East Tensions Loom
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Gold (XAU/USD) stabilizes above $2,730 after hitting a one-week low, with safe-haven flows buoyed by election uncertainty and Middle East tensions. Supportive factors include Fed rate cut expectations, declining US Treasury yields, and subdued demand for the US Dollar. However, resistance near $2,750 and broader technical factors suggest caution for further gains. Markets await the US ISM Services PMI for additional cues.
Gold Prices Hold Steady as US Election and Geopolitical Risks Drive Safe-Haven Demand
Gold is trading around $2,735 in the European session, maintaining its position after a dip to a one-week low earlier on Tuesday. Safe-haven demand has supported the precious metal, with investors eyeing the close U.S. presidential election and escalating tensions in the Middle East. Iran's recent warnings to Israel and the U.S. have further underscored geopolitical risks, adding strength to gold’s appeal amid market uncertainties.
Fed Rate Cut Bets and Declining US Bond Yields Provide Tailwind for Gold
Expectations of a Federal Reserve rate cut, coupled with a decline in US Treasury yields, have lent support to gold prices. Bond yields saw their most significant one-day drop in recent months, attributed to cooling labor market data that fueled the prospect of additional easing from the Fed. This environment weakens the Dollar, enhancing the appeal of non-yielding assets like gold.
Technical Outlook: Key Levels to Watch for Gold
From a technical perspective, gold faces immediate resistance between $2,748 and $2,750. A move past this range could open up a path toward last week’s high of $2,790 and potentially challenge the ascending channel resistance near $2,820. A breakout here would signal renewed bullish momentum. On the downside, support lies at $2,720–$2,715, followed by $2,690 if bearish sentiment increases.
What to Expect Next
As markets await the US ISM Services PMI release, gold is likely to remain range-bound ahead of the election outcome. A prolonged vote count or contested results could trigger further safe-haven flows, keeping gold well-supported in the near term.
Gold Prices Hold Steady as US Election and Geopolitical Risks Drive Safe-Haven Demand
Gold is trading around $2,735 in the European session, maintaining its position after a dip to a one-week low earlier on Tuesday. Safe-haven demand has supported the precious metal, with investors eyeing the close U.S. presidential election and escalating tensions in the Middle East. Iran's recent warnings to Israel and the U.S. have further underscored geopolitical risks, adding strength to gold’s appeal amid market uncertainties.
Fed Rate Cut Bets and Declining US Bond Yields Provide Tailwind for Gold
Expectations of a Federal Reserve rate cut, coupled with a decline in US Treasury yields, have lent support to gold prices. Bond yields saw their most significant one-day drop in recent months, attributed to cooling labor market data that fueled the prospect of additional easing from the Fed. This environment weakens the Dollar, enhancing the appeal of non-yielding assets like gold.
Technical Outlook: Key Levels to Watch for Gold
From a technical perspective, gold faces immediate resistance between $2,748 and $2,750. A move past this range could open up a path toward last week’s high of $2,790 and potentially challenge the ascending channel resistance near $2,820. A breakout here would signal renewed bullish momentum. On the downside, support lies at $2,720–$2,715, followed by $2,690 if bearish sentiment increases.
What to Expect Next
As markets await the US ISM Services PMI release, gold is likely to remain range-bound ahead of the election outcome. A prolonged vote count or contested results could trigger further safe-haven flows, keeping gold well-supported in the near term.