Gold price rose for the third consecutive day and came ticks ahead of new all-time high in early Wednesday’s trading.
Markets await the release of US August CPI report to complete the picture ahead of Fed policy meeting next week.
If Aug numbers come in line with expectations or better, it will signal that inflation remains in a downward trajectory and heading towards Fed’s 2% target, implying that 25 basis points cut will be likely scenario.
Markets widely expect the Fed to opt for three 0.25% rate cuts by the end of the year, though more aggressive action cannot be completely ruled out, amid recent weaker than expected US economic data which sparked fresh recession fears.
Overall, the yellow metal is expected to remain well supported by expected policy easing, as well as rising geopolitical tensions, which continue to fuel safe-haven demand.
Investors were not impressed by the US Presidential debate and prefer to stick to economic data rather than political promises.
Firmly bullish technical studies on daily chart are expected to contribute to positive outlook.
Although bulls will likely face increased headwinds at record high zone, eventual break above the top of multi-week consolidation range is seen as likely scenario.
Violation of $2431 peak will expose targets at $2554 and $2568 (Fibo projections) and round-figure barrier at $2600, which many analysts see as target for this year.
Near-term action is expected to remain biased higher while the price stays above psychological $2500 support, also the mid-point of the recent $2531/$2470 range.
Res: 2531; 2554; 2568; 2600.
Sup: 2514; 2507; 2500; 2480.
