GOLD Analysis September 2024

Gold continued to experience volatility in September 2024 as it was driven by shifting economic conditions, central bank policies, and ongoing geopolitical risks.

Key Drivers:

1. Federal Reserve Policy: Gold remained highly sensitive to the Federal Reserve’s monetary policy decisions. As inflation moderated in the US, market participants anticipated a slower pace of rate hikes, which supported gold prices. However, any indications of aggressive tightening could put downward pressure on gold.
2. Geopolitical Risks: Continuing tensions in the Middle East and other regions fueled demand for safe-haven assets like gold. Investors were keen to hedge against the uncertainty, which provided a floor for gold prices.
3. Global Economic Slowdown: Slower growth in China and Europe helped support gold as a defensive asset. Investors turned to gold as a hedge against weakening global demand and potential economic instability.

Technical Outlook:

Gold traded between $1,900 and $1,960 per ounce in September, with resistance at $1,960 capping gains. Support at $1,900 remained firm, with any dips being quickly bought by investors. A breakout above $1,960 could signal a move toward $2,000, while a break below $1,900 would indicate further downside risks.

Recommendation: Traders should consider buying on dips near $1,900, with a target of $1,960. Long-term investors may continue holding gold as part of a diversified portfolio, particularly as global economic uncertainty and geopolitical risks persist.