GOLD - USD - Gold review before the Fed meeting - 09/16/2024 (GMT)

Gold prices extended gains and were recording a new peak around $2,589-$2,590, as investors just built on rate-cut hopes from the Federal Reserve. The rise of gold as a perceived safe-haven asset, while U.S. bond yields may remain at lower levels and the US dollar softer due to political uncertainty also ahead of the U.S. economic month elections, coupled with increasing geopolitical risks keep supporting gold but positive global market mood capped further gains. The next likely source of volatility, and guidance on the future direction for gold prices comes from this week's FOMC meeting as well as policy meetings this week by both the Bank of England (Thurs) and Bank of Japan (Fri).
  From a technical point of view, the price hit a new all-time high pushing the Stochastic oscillator to the extreme overbought level possibly hinting at a potential bearish correction in the near short term. On the other hand, it would not be strange for the oscillator to remain in extreme overbought level for a prolonged period of time if we don’t see a new catalyst in the market to create selling pressure. The moving averages validate the overall bullish trend in the market for gold and no other major indications are there to support a bearish reversal for the time being.