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Gold prices continue to reach record highs and stand above 4,000, and the overall strength of the US dollar cannot hinder the rise.
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Hello everyone, today XM Forex will bring you "[XM Forex]: Gold prices continue to hit record highs and stand above 4,000, and the overall strength of the U.S. dollar cannot stop the rise." Hope this helps you! The original content is as follows:
Spot gold continued its recent record-breaking gains. On Wednesday (October 8), it successfully stood at the US$4,000/ounce mark and continued its upward momentum, once setting a new record of US$4,036.98/ounce. The U.S. government shutdown has exacerbated economic uncertainty, coupled with rising market expectations for further interest rate cuts by the Federal Reserve, which is becoming a key driving force for the influx of funds into safe-haven gold.
In addition, against the backdrop of a slight deterioration in global risk sentiment, escalating trade and geopolitical tensions, as well as continued gold purchases by central banks, have jointly contributed to this strong rise.
The above-mentioned support factors have effectively offset some of the subsequent pressure on US dollar buying (a stronger US dollar usually suppresses www.xmltrust.commodity demand). Even short-term technical charts showing extreme overbought conditions have failed to dampen bullish sentiment in the gold market or hinder price momentum. This indicates that the path of least resistance for gold prices remains upward.
The market is paying close attention to the minutes of the Federal Reserve's FOMC meeting to be released later today, as well as the public speech of Federal Reserve Chairman Powell on Thursday - these events may release interest rate cut signals and inject new upward momentum into interest-free gold.
Fundamental support is solid, and gold’s rally continues to extend
The political deadlock in the United States deepens: the federal government shutdown has entered its second week, with both Republicans and Democrats insisting on their respective positions, and no progress has been made in budget negotiations. The funding impasse has exacerbated economic uncertainty and may further drag down U.S. economic performance amid the clouds of global trade.
Expectations of interest rate cuts by the Federal Reserve have intensified: The monetary easing cycle started by the Federal Reserve in September, coupled with the market’s continued bets on subsequent interest rate cuts, continues to boost the appeal of interest-free gold. profitRate futures show that the market currently expects the probability of the Federal Reserve to cut interest rates by 25 basis points at each of its October and December meetings has increased significantly.
Gold ETF capital inflows hit a record: According to data from the World Gold Council, gold ETFs have attracted a total of US$64 billion in capital inflows so far this year, setting a record high. Among them, net inflows in a single month in September hit a peak in more than three years. This reflects that investors are accelerating the deployment of gold to hedge against potential market turmoil.
The wave of gold purchases by global central banks has not stopped: Although gold prices frequently reach new highs, central banks continue to increase their gold holdings to diversify their foreign exchange reserves. The latest data shows that global official gold reserves increased by 15 tons in August, with the National Bank of Kazakhstan leading the purchase of gold.
A stronger U.S. dollar cannot hinder the rise in gold prices: driven by the weakness of the Japanese yen and the euro (both currencies are suppressed by domestic political uncertainty), the U.S. dollar index has climbed to a new high since August 25. However, a stronger U.S. dollar has not dampened gold's strong bullish sentiment or hindered its upward momentum.
The market’s focus is on the Federal Reserve: Investors are paying close attention to the FOMC meeting minutes to be released later today, while waiting for Federal Reserve Chairman Powell’s speech on Thursday to explore more clues on the path of future interest rate cuts. These events will dominate the U.S. dollar and provide a new directional driver for gold.
The price of gold seems to be poised to break through the resistance of the ascending channel, and the upward pace is expected to further accelerate
The price of gold stood firmly above the $4,000 mark on Wednesday, confirming a new breakthrough in the ascending channel that has been extended since mid-September.
Although short-term technical charts continue to show overbought signals, gold's rally has not yet been significantly hindered, which provides strong support for the continuation of the upward trend established over the past two months.
Any current technical correction below the psychological $4,000 mark may be supported by buying orders at the $3,975 horizontal support level. However, if it effectively falls below this support level, it may trigger the liquidation of some long positions and push gold prices down to the next key support in the $3948-3947 range. The subsequent decline may further test the lower track support of the ascending channel near the $3,900 mark.
The above content is all about "[XM Foreign Exchange]: The price of gold continues to hit a record high and stands above 4,000, and the overall strength of the U.S. dollar cannot stop the rise." It is carefully www.xmltrust.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
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