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Gold prices are holding near record highs, supported by expectations of a 50-basis-point Fed rate cut in November and a weakening US Dollar. Geopolitical tensions, particularly in the Middle East, and concerns about China's economic recovery are also driving demand for the safe-haven metal. While gold remains in a consolidation phase due to slightly overbought conditions, technical indicators suggest the path of least resistance is to the upside. Investors are focused on Fed Chair Jerome Powell's upcoming speech and key US economic data, including GDP and jobless claims, for further direction. Any pullback towards $2,625 may offer a buying opportunity.

Key Highlights

* Gold remains close to its all-time high as Fed rate cut bets rise.

* Geopolitical tensions and China's economic concerns support gold prices.

* Markets await Fed Chair Jerome Powell's speech for rate cut clarity.

* Technical outlook shows gold in consolidation, with overbought RSI.

* Potential pullback seen as a buying opportunity amid bullish trends.

Gold prices have been trading close to record highs, supported by rising expectations of a 50-basis-point rate cut from the US Federal Reserve in November. This, along with a weakening US Dollar, has provided a firm foundation for gold as a non-yielding asset. Tensions in the Middle East and concerns about China’s recovery, despite the introduction of fresh stimulus measures, have further enhanced the appeal of gold as a safe haven. During Thursday’s Asian session, gold (XAU/USD) edged higher, maintaining proximity to its all-time peak touched earlier this week.

From a technical perspective, the daily chart indicates overbought conditions with the RSI, keeping the bulls in check for now. However, gold's breakout from a short-term ascending trend channel suggests continued bullish momentum in the longer term. Any pullback towards the $2,625 support region may be seen as a buying opportunity, with limited downside risk expected near the $2,600 mark.

Investors are now focused on Fed Chair Jerome Powell’s speech, along with key US macroeconomic data like Q2 GDP, jobless claims, and durable goods orders, for further clues on the rate cut trajectory. This data, along with ongoing geopolitical tensions and economic uncertainties, will likely shape the near-term direction for gold prices.

Finally

Gold remains bullish near its peak, with potential pullbacks offering buying opportunities. Powell's speech and macroeconomic data could drive the next major move.

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