Gold prices have reached a new all-time high, driven by expectations of further Fed rate cuts and rising geopolitical tensions. Weaker-than-expected US Consumer Confidence data has increased the likelihood of a larger rate cut.
Fed Rate Expectations
The Federal Reserve (Fed) is expected to cut interest rates by 50 basis points (bps) in November, according to the CME Fedwatch tool. Recent comments from Fed officials have supported this expectation.
Economic Data
The US Consumer Confidence Index for September fell below expectations, indicating a potential slowdown in the US economy.
Technical Analysis
Gold prices have entered the overbought zone, according to the Relative Strength Index (RSI). This suggests a potential short-term correction. However, the long-term trend remains bullish, with potential targets at $2,700 and $2,750.