This morning (10/14), the gold price decreased slightly to $2,650 per ounce, ending a two-day rising streak. The market is significantly affected by tensions in the Middle East and economic signals from China.
🔥 Geopolitical Tensions
Last weekend, many investors bought gold in anticipation that Israel would respond to Iran, leading to a strong increase in safe-haven demand. However, with no specific actions from Israel, many quickly took profits, causing the gold price to drop.
🔥 Chinese Economic Stimulus
China is hinting at new economic stimulus packages, but the issuance of additional debt could create short-term pressure on the gold market. Additionally, declining inflation in China raises concerns among investors about gold consumption from this major market.
🔥 Strengthening USD
The strengthening US dollar continues to exert pressure as the PPI index shows inflation remains under control, increasing the likelihood that the Fed will cut interest rates by the end of the year.
🔥 Middle East Tensions Remain a Risk Factor
With the situation in the Middle East continuing to escalate, gold prices may remain high in the near future due to the demand for safe-haven assets.
💡 Trading Strategy
- Sell: Execute trades in the range of $2,654-2,656 per ounce. Take profit at $2,648, $2,642, and $2,635, with a stop loss at $2,661.
- Buy: Trade in the range of $2,625-2,628 per ounce. Take profit at $2,634, $2,642, and $2,650, with a stop loss at $2,620.
