Gold prices rise as market eyes economic data and Fed policy.

Recently,Is BOC Foreign Exchange a regular platform? gold prices have rebounded from the weekly low and broken through an ascending flag pattern, indicating strong upward momentum. As divisions over Federal Reserve monetary policy intensify, the demand for gold as a safe-haven asset has increased. Although gold prices reached a high of $2,673 earlier this month, analysts point out that a short-term correction may occur in the future. However, the overall upward trend in gold prices remains evident, especially under the support of the 50-day moving average, with prices potentially rising further.

The upward trend of gold is closely related to the global economic slowdown and the prospects of Federal Reserve policy. As the Fed might adopt a wait-and-see attitude, market expectations for future interest rate cuts continue to ferment, further driving the safe-haven demand for gold. Moreover, weak economic data may prompt the Fed to relax its monetary policy in dealing with inflation issues, which will provide more upward momentum for gold prices.

From a technical perspective, if gold prices break through the monthly high of $2,673, the next challenge might be the September high of $2,686, and possibly even rise further to around $2,730. The market will closely monitor the trend of the Relative Strength Index (RSI), as an RSI approaching the overbought area but not breaking 70 may indicate a weakening of upward momentum.

Overall, gold's position as a safe-haven asset remains solid. Investors need to closely monitor the Fed's policy directions and the impact of global economic data on the market. In the short term, gold prices may continue to be supported by adjustments in monetary policy and the risks of economic slowdown, with volatility in financial markets potentially intensifying.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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