Gold began the week cautiously as traders positioned themselves ahead of key central bank decisions, but it quickly regained strength. Expectations that the U.S. Federal Reserve may adopt a more aggressive easing stance in the coming months continue to lend support to the metal. The weaker U.S. dollar and declining Treasury yields have further enhanced gold’s appeal as a non-yielding safe-haven asset.
As one commodities strategist put it: “Gold remains underpinned by the twin drivers of softer yields and a weaker dollar. The Fed’s next meeting will be critical in setting the tone for the final quarter of the year.”
Beyond monetary policy, geopolitical tensions are also adding to demand. Ongoing instability in the Middle East and renewed strikes on Eastern European energy infrastructure have heightened concerns about supply chains and sanctions. In this environment, many investors are maintaining positions in gold and silver as a hedge against unexpected shocks, even as broader risk appetite in equities stays relatively firm.
This week’s heavy central bank calendar including policy announcements from the Federal Reserve, Bank of Canada, Bank of England, and Bank of Japan is expected to provide the next major catalyst for price direction.
Technical Picture
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Current price: $3,644, holding just above the rising trendline from September lows.
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Key support:
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50-period EMA near $3,631 (short-term support).
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200-period EMA near $3,534 (major floor).
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Resistance: $3,658 continues to act as a ceiling, with buyers stepping in near $3,639 to defend the trendline.
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Momentum: RSI at 53 suggests neutral conditions, reflecting consolidation without strong directional bias.
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Scenarios:
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A break below $3,626 could trigger a pullback toward $3,613.
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A close above $3,658 would open the door to $3,674 and $3,688.
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Traders are watching volume closely to confirm whether the next breakout will be to the upside or downside.
This market commentary is for informational purposes only and should not be considered financial advice.
