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Gold price remains steadily above $2,650 for the second straight session on Wednesday as traders increased the odds for another big interest rate cut by the Federal Reserve (Fed) at the upcoming November meeting. That and high US Treasury yields kept the XAU/USD from rising further, and it mostly traded near $2,660, up 0.14%.Market sentiment shifted slightly sour during the US session as Wall Street traded in the red. Hence, Bullion prices hit a record high of $2,670 but retreated as US Treasury yields rose four and a half basis points (bps) to 3.775%.In the meantime, the US Dollar Index (DXY), which tracks the buck’s value against another six currencies, bounced off a 14-month low and edged up 0.54% to 100.88.During the week, US economic data showed that business activity in the manufacturing sector cooled while services remained resilient. However, a deterioration in Consumer Confidence via the Conference Board (CB) suggests that conditions in the labor market could be worse than projected.Last week, the Fed lowered borrowing costs by 50 bps to 4.75%-5.00%, and traders seemed confident about back-to-back cuts of the same size. According to the CME FedWatch Tool, the odds for a 50 bps Fed cut are 60%, while 25 bps stands at 40%.Bullion prices had risen 29% in 2024, sponsored by Gold’s physical demand and major central banks beginning their easing cycles. This and geopolitical tensions could keep traders setting their sights at $2,700.Bullion has risen over 29% so far in 2024, with gains attributed to central bank easing and geopolitical issues.
Daily digest market movers: Gold price stays firm amid high US yields
XAU/USD technical outlook: Gold price consolidates around $2,650-$2,660
Gold prices are set to extend the gains. However, price action turned sideways on Wednesday amid the lack of catalysts, which could push XAU/USD above its current record high toward $2,700.From a momentum standpoint, the Relative Strength Index (RSI) signals that Gold is overbought, which could cause a leg-down before the rally resumes.If XAU/USD extends its rally past the current year-to-date (YTD) peak of $2,670, look for a challenge of $2,675, followed by $2,700. Up next would be the $2,750 level, followed by $2,800.On the flip side, if XAU/USD drops below $2,650, look for a test of the September 18 daily high at $2,600. The following key support levels to test will be the September 18 low of $2,546, followed by the 50-day Simple Moving Average (SMA) at $2,488.More By This Author:USD/JPY Price Forecast: Struggles At 144.00 Tumbles After Hitting Two-Week Peak Gold Hits All-Time High Above $2,650 As Consumer Confidence Deteriorates GBP/USD Price Forecast: Gained Modestly After Hitting Record High Above 1.3300
