Gold Futures Retrace Slightly but Stay Elevated Amid Geopolitical Tensions and Rate-Cut Optimism


US Rate-Cut Optimism:
The recent U.S. CPI data aligned with expectations, supporting the likelihood of a rate cut in December.
Lower interest rates make non-yielding assets like Gold more attractive, underpinning its rally.
Short-Term Outlook:
Bullish Factors:
Geopolitical risks provide a supportive floor for prices.
Market expectations of rate cuts are favorable for Gold.
Resistance:
The next major level to watch is $2,775–$2,780, which could act as a barrier if the bullish trend continues.
Support:
If retracements deepen, immediate support lies around $2,735 and stronger support near $2,700.
Trading Implications:
  • For Bulls: The elevated levels suggest maintaining positions while watching for a break above $2,775 to target $2,800.
  • For Bears: Look for potential corrections if prices breach support at $2,735, targeting $2,700 or lower.

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Ana

Cross-Asset Analyst & Trainer

Varun Sharma

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