The legend in the InstaSpot team!
Legend! You think that's bombastic rhetoric? But how should we call a man, who became the first Asian to win the junior world chess championship at 18 and who became the first Indian Grandmaster at 19? That was the start of a hard path to the World Champion title for Viswanathan Anand, the man who became a part of history of chess forever. Now one more legend in the InstaSpot team!
Borussia is one of the most titled football clubs in Germany, which has repeatedly proved to fans: the spirit of competition and leadership will certainly lead to success. Trade in the same way that sports professionals play the game: confidently and actively. Keep a "pass" from Borussia FC and be in the lead with InstaSpot!
Gold continues to rise, as mounting economic challenges fuel market expectations of Federal Reserve interest rate cuts. At the same time, the U.S. dollar is struggling to attract new buyers due to pessimistic Fed policy expectations and fears of slower economic growth caused by the prolonged U.S. government shutdown. These factors remain key drivers, supporting demand for the yellow metal, which is traditionally viewed as a safe-haven asset during periods of uncertainty.
Meanwhile, the gradual reopening of the U.S. government is helping to improve risk sentiment, which may reduce traders' appetite for aggressive gold purchases, since gold is generally considered a defensive asset. Nevertheless, the fundamentals continue to suggest that the path of least resistance for XAU/USD remains upward. Therefore, any corrective pullback can still be viewed as a buying opportunity.
The resumption of U.S. government operations has refocused market attention on worrisome budget prospects and the potential for slower economic growth. Analysts estimate that the prolonged shutdown could have reduced quarterly GDP growth by about 1.5–2%. The resumption of normal economic data releases is likely to reinforce these concerns, especially after last week's weak employment and consumer sentiment reports.
In addition, markets continue to assess the likelihood of a Fed rate cut next month. Research by Revelio Labs, a firm specializing in labor market analytics, showed that about 9,100 jobs were lost in October, while public sector employment declined by 22,200. Furthermore, according to estimates from the Federal Reserve Bank of Chicago, the unemployment rate rose slightly last month, indicating a modest deterioration in labor market conditions.
These figures strengthened dovish sentiment among Fed members and led to a decline in the U.S. dollar on Tuesday, a scenario that gave gold additional upward momentum.
From a technical perspective, the XAU/USD pair has broken above the key psychological level of $4200, targeting the next resistance at $4240. On the other hand, the former resistance at $4150 now acts as immediate support. Oscillators remain positive, confirming that the path of least resistance is to the upside.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaSpot analytical reviews will make you fully aware of market trends! Being an InstaSpot client, you are provided with a large number of free services for efficient trading.
