Gold forecast & Gold trading strategies， XAUUSD analysis For October 21, – 27, 2024

Top Forex Brokers – Forex Weekly news and analysis For October 21, – 27, 2024

Gold is traditionally the most popular instrument among traders. Right now, it receives even more attention as more people and institutions turn to it for protection during times of instability.

If you want to make your own decision on gold-based instruments, read our analysis below and fund your account to be ready when the moment is right.

Factors impacting gold now

Geopolitical instability

In times of uncertainty, investors have traditionally turned to gold to protect their money. The conflicts between Russia and Ukraine, the turmoil in the Middle East, and overall tensions in global politics boost demand for gold as a safe haven asset.

Inflation and interest rates

Central banks in many countries continue to struggle with inflation. The latest US CPI report confirms that inflation is still trending upward, the same as the unemployment rate in the United States. This difficult situation for the Federal Reserve leads to uncertainty and increases demand and interest in gold.

Macroeconomic players activities

Gold’s popularity has surged among macroeconomic players. Over the past year, notable institutions, including the Central Bank of China, have made significant gold purchases. China’s gold reserves rose from $182.98 billion in late August to $191.47 billion by late September. It is no wonder that gold prices have increased by around 28% this year, marking the largest annual gain in 14 years.

Gold trading strategies

•Given all the global trends that impact gold, be sure to assess risks based on global macroeconomic events and news.
•Since global trends usually have long-term consequences, we recommend analyzing XAUUSD over the medium to long term. Consider trading on large timeframes (from H4 to Weekly) or investing.
•Use technical analysis tools when making trading decisions. For example, MFI and RSI indicators can show overbought conditions for the instrument, after which gold can “unload.” When these indicators return to the middle zone, the asset can head upwards again.

Forecast for XAUUSD

Given all the macroeconomic factors above, it is no wonder that gold prices have increased by around 28% this year, marking the largest annual gain in 14 years. FBS analysts predict that gold will keep its upward dynamics.

The H4 chart shows that XAUUSD navigates in a global uptrend channel. The price just breached above the local bullish flag and retested its upper border, while the DEMA and TEMA indicators give the asset layers of resistance.

•If XAUUSD breaks above the 2680 resistance, it will grow further to the 2725 resistance. Further breaking above the 161.8 Fibonacci will send the asset price to the 2800 target.
•However, if the asset fails to surpass the 2725 resistance, it will fall to the 2680 level and start its ascent again.

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