Gold prices have declined slightly, primarily due to a decrease in demand from China, the world’s largest gold consumer. The China Gold Association reported a decline in gold jewelry consumption during the first three quarters of 2024 compared to the same period last year.
However, gold remains supported by several factors:
- Geopolitical Tensions: Ongoing geopolitical tensions, particularly in the Middle East, continue to drive safe-haven demand for gold.
- Central Bank Buying: Central banks around the world have been increasing their gold reserves, further bolstering demand.
- Interest Rate Environment: Lower interest rates globally make gold, a non-yielding asset, more attractive to investors.
Technical Analysis:
- Sideways Trend: Gold is currently trading in a sideways range, with potential for both upside and downside movements.
- Resistance Levels: The $2,758 level is a key resistance level.
- Support Levels: The $2,708 level is a potential support level.
