XAUUSD - Profit Taking as per usual by NY

31 Okt

• The recent drop in gold appears to be a classic profit-taking move by algorithms using the latest economic data as a justification to temporarily drive prices lower.
  Despite some stronger U.S. data, nothing has fundamentally shifted in terms of gold’s long-term outlook.
  
  Fundamental Justification:
• Inflation Stability: Core inflation indicators remain steady, reinforcing gold’s appeal as a hedge against inflation.
  
• Interest Rate Expectations: The Federal Reserve is expected to hold rates steady, with markets leaning toward potential rate cuts next year, which is typically bullish for gold.
  
• Global Uncertainty: Persistent geopolitical tensions and economic uncertainties still make gold attractive as a safe haven.
  
• In essence, the recent pullback is more about short-term positioning rather than a change in the fundamental landscape for gold, keeping the overall bullish view intact with $2,790 as a reasonable upside target.
  

• Target: Given the previous high of $2,790, we should expect a return to this level as per usuual.
  

Breakdown:

• Fundamentals: 85/100 – Supportive due to inflation concerns, steady rates, and safe-haven appeal amidst global uncertainties.
  
• Technical Outlook: 75/100 – Some short-term selling pressure, but the trend remains positive with a high likelihood of retesting previous highs.
  
• The score reflects strong underlying bullish support with a high probability of a return to previous levels, though some short-term volatility from profit-taking will obviously persist.