⚠️GOLD Unstoppable
From yesterday’s analysis, gold made only a small correction up to 2650 before resuming its upward movement. The FOMC speculation regarding a potential rate cut by the end of the year continues to support the bullish trend. The market is interpreting the same news repeatedly in an unprecedented manner, which is weighing heavily on the USD and contributing to gold’s strength.
GOLD already reached 2685 as expected movement.
Additionally, within the next hour, we have Powell’s speech, and the market expects him to reiterate the possibility of a 50 bps interest rate cut.
However, the primary factor driving gold higher is the new conflict between Israel and Lebanon. Considering gold’s strength, it appears poised to continue rising. This is the only direction it has moved so far, albeit in a rather unsettling manner. The market is heavily positioned on one side, which doesn’t make sense from all perspectives. It seems everyone is adding to their long positions in gold.
⚠️But what might happen if the major players start taking profits one of these days? Will the gold price reconsider its trajectory despite the ongoing war? A similar situation is unfolding with oil, which is undervalued at a critical moment when it should be around 130.