Gold might be trading down nearly 2% today but overall price action isn't anything that we haven't seen in the past week. This comes as the tug of war continues to play out for the precious metal. As things stand, price action remains in a bit of a limbo with the key hourly moving averages capping the near-term upside while dip buyers are holding the line closer to $4,000 for now.
That's keeping things in limbo as we look to wrap up the month and even with the drop from a high of $4,381, gold is still holding over 4% gains in October. Talk about unnerving gains, eh?
The latest market developments see traders fully pricing in two Fed rate cuts for October and December with more positive geopolitical happenings as well with the US and China looking to settle for another truce later this week. That's keeping a lack of fresh catalysts to give dip buyers incentive to manage further upside momentum in gold for now.
But looking to next year, there's still much to play for. US-China trade tensions continue to be a case of kicking the can down the road and US economic developments are also still struggling for a major pull in either direction. The Fed seems poised to cut rates further in 2026 but how quickly will they do so?
The pace of softening in the labour market will be one to watch as well as for any further tariffs passthrough on inflation. So, that will keep the one of the main prevailing narratives continuing for at least the early stages of next year.
For now though, it's all on the technicals and the near-term chart above exemplifies how things are stuck in the battlefield.
