Gold prices continued their upward trend during Asian trading hours on Monday (October 21st), approaching $2,733 per ounce at one point, setting a new historical high; by the end of the Asian market, gold prices fell from their highs and are currently trading near $2,726 per ounce. The well-known financial information website, Economies.com, published a new article on Monday, analyzing the technical outlook for gold for the day.
Spot gold closed higher by $28.64 last Friday, up 1.06%, at $2,721.38 per ounce. During Monday's Asian market, the price of gold once soared to a historical high of $2,732.84 per ounce.
According to Economies.com, the technical side of gold continues to support gold prices, as long as gold prices hold above $2,700.00 per ounce, the outlook remains bullish.
Despite the US dollar still being close to its highest level since early August, expectations of Israeli retaliation against Iran have stimulated demand for safe-haven assets.
The latest Kitco News weekly gold survey shows that industry experts are almost unanimously optimistic about the prospects for gold. Among the 16 analysts participating in the survey, 15 are bullish, and 1 is neutral.
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Furthermore, after three consecutive weeks of weakening confidence in the upward momentum of gold, the sentiment of the majority of retail investors has also returned to an optimistic area.
Marc Chandler, Managing Director of Bannockburn Global Forex, believes that, overall, gold still has upward momentum.
He said that the latest surge in gold prices occurred against the backdrop of a stronger US dollar and rising US interest rates, with tensions in the Middle East continuing to escalate, and the upcoming BRICS summit highlighting the demand for gold from central banks.
Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, is also bullish on the performance of gold prices in the coming week. He said that there is currently no obvious resistance to the upward trend of gold, especially as prices break through new highs, market bullish sentiment continues to strengthen.
Economies.com wrote in the article that gold prices have risen and approached our awaited target price of $2,745.00 per ounce. The path for gold prices to rise further in the medium term seems to have opened, with the next target aiming for the $2,765.00 per ounce area.Economies.com states that the bullish channel continues to propel the gold price upwards, achieving further bullish targets. On the 4-hour chart of gold, the 50-period Exponential Moving Average (EMA) continues to provide support. It should be noted that if the gold price breaks below $2700.00 per ounce, this may force some intraday bearish correction in the gold price before turning upwards again.
Economies.com expects today's trading of the gold price to be between the support level of $2715.00 per ounce and the resistance level of $2750.00 per ounce.
Economies.com states that the expected trend for gold prices today is bullish.
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