-
Gold breaches $4,000 amid market turbulence and US economic uncertainty.
-
AI-driven layoffs unexpectedly boosted gold's safe-haven appeal.
-
UBS ($4,700) and MS ($4,500) set high targets as the metal eyes a crucial technical breakout.
-
Gold breaches $4,000 amid market turbulence and US economic uncertainty.
-
AI-driven layoffs unexpectedly boosted gold's safe-haven appeal.
-
UBS ($4,700) and MS ($4,500) set high targets as the metal eyes a crucial technical breakout.
Gold has surged back above $4,000 per ounce, reaching its highest level since the start of the week. The price increase is largely attributable to heightened turbulence across financial markets and growing uncertainty surrounding the US economy. While the recent ADP and ISM reports indicated strong data, today's Challenger report showed a significant increase in the number of planned layoffs across the United States. Intriguingly, these job cuts appear to be a consequence of the AI revolution, rather than being solely linked to the recent government shutdown.
At present, we are still observing a net reduction in gold holdings by Exchange Traded Funds (ETFs). However, the rebound seen yesterday and today may signal the return of market demand. The latest forecast from UBS, released in recent hours, suggests that gold should reach a level of at least $4,200 in the near term. Furthermore, should geopolitical turbulence persist, the metal could potentially touch $4,700 per ounce next year.
In contrast, a forecast from Morgan Stanley at the end of October indicated that the price of gold is projected to reach $4,500 per ounce by the middle of next year.
Technically, gold is currently consolidating within a triangle formation, yet simultaneously it appears to have ended the sequence of setting lower lows and lower highs. Conventionally, a triangle formation following such a steep decline might suggest a downward breakout and a continuation of the selling trend. Conversely, there is a current possibility of an upward breakout from the triangle. Crucially, gold has returned above the $4,000 mark and is trading above the 38.2% Fibonacci retracement level. Should gold successfully reclaim the last uptrend line and the 23.6% retracement level, the recent correction could be deemed to be fully over.
💷 GBPUSD Gains Ahead of BoE Decision
BREAKING: Germany Indstustrial Production Much Lower Than Expected
Daily Summary - Wall Street Inflection Point
⏫US100 Jumps 1% on Tariffs Hopes
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
