XAUUSD forecast for Monday 21/10/2024

XAUUSD forecast on Monday 21/10/2024

Short-Term Price Movement: For Monday, October 21, 2024, the XAU/USD (Gold against the US Dollar) is forecasted to see a daily high around $2,740.27 and a low potentially reaching $2,707.90, according to some predictions available up to October 20, 2024. This suggests a bullish sentiment with a slight potential for volatility.
Market Sentiment: The sentiment for gold appears to be leaning towards a “Buy” or at least holding onto current positions rather than selling, based on recent analyses up to October 20. This could be influenced by various global economic factors, including monetary policy expectations and geopolitical tensions which traditionally make gold a safe-haven asset.
Technical Analysis: Moving averages and other technical indicators might be signaling a strong buy, considering the general trend observed in the days leading up to October 20. However, always keep in mind that technical analysis provides probabilities, not certainties.
Fundamental Factors:
- Monetary Policy: Expectations around the Federal Reserve’s actions might influence the dollar’s strength, thereby affecting gold prices. If there are signals or announcements hinting at rate cuts or economic stimulus, this could bolster gold prices due to a weaker dollar and inflation hedge appeal.
- Global Economic Health: Gold often does well in times of uncertainty or when there’s a dip in confidence regarding global economic stability. Any news or events over the weekend or on Monday that suggest economic downturns, geopolitical risks, or unexpected inflation figures could push gold prices up.
Long-Term Trends: Looking beyond Monday, forecasts for gold suggest a bullish trend into 2025 and beyond, with some predicting yearly highs that could significantly exceed current levels, driven by potential economic policies, inflation rates, and global demand for gold.

Considerations for Monday:

Watch for any economic releases, especially from the U.S., like job data, GDP growth rates, or Fed statements, which could sway the dollar and thus gold prices.
Geopolitical developments over the weekend or early Monday could also provide last-minute shifts in market sentiment towards or away from safe-haven assets like gold.