Gold – Bulls maintain control as they aim for a retest of the record high

Gold prices approached just below the record high of $2,685 during European trading on Wednesday, marking a fresh extension of the bull run from the $2,602 low on Oct 10, which had followed a corrective pullback from the same $2,685 peak.

The precious metal remains well-supported by the growing prospects of global monetary policy easing, ongoing geopolitical tensions, and uncertainties surrounding the upcoming U.S. election. Despite divisions among Fed officials on the pace and extent of rate cuts by year-end, the central bank is still expected to proceed with further easing, with markets closely watching upcoming U.S. economic data for more clarity on the rate cut trajectory.

Bulls are likely to retest the $2,685 peak, though overbought conditions on the daily chart and neutral momentum suggest that consolidation may occur at this level before any further upward move. Converging 10- and 20-day moving averages support this consolidation scenario, with pullbacks expected to find support around the $2,640 zone, signaling a healthy correction. However, the broader bullish outlook remains intact as long as the pivotal $2,600 level holds.

Immediate targets include the round-figure resistance at $2,700 and the Fibonacci projection at $2,705 (123.6%), followed by further projected levels at $2,717 (138.2%), $2,736 (161.8%), and $2,748 (176.4% of the upleg from $2,602).

Res: 2685; 2700; 2705; 2717
Sup: 2658; 2645; 2633; 2621