Gold Market Analysis:

Gold prices were range-bound in early Asian trade on Tuesday, October 22nd, trading around $2722.05 per ounce.  Gold prices retreated from record highs on Monday, closing at $2719.43 per ounce, down about 0.1%, after surging to an all-time high of $2740.44.  The pullback was driven by rising US Treasury yields and a stronger US dollar, which offset support from heightened uncertainty surrounding the US election and the Middle East conflict.  The yield on the 10-year US Treasury note climbed to a 12-week high of 4.18% on Monday, up 10.5 basis points, its highest level since July 30th. The US dollar index also strengthened, making gold more expensive for overseas buyers.

US Secretary of State Antony Blinken's trip to the Middle East to push for a ceasefire and restart negotiations provided some relief to markets. Blinken is expected to meet with leaders from Israel and neighboring Arab countries to discuss the importance of ending the Gaza war, ways to develop a post-conflict plan for the Gaza Strip, and how to resolve the conflict between Israel and Hezbollah through diplomatic means. This slightly dampened safe-haven demand for gold.

Gold has rallied more than 32% year-to-date, repeatedly hitting record highs.  With market sentiment extremely bullish, investors should be wary of potential profit-taking.  The focus today will be on the IMF's World Economic Outlook report and any further developments in the Middle East.

Gold Technical Analysis:

Daily Chart:Gold prices formed a bearish candlestick with a long upper shadow on Monday, indicating selling pressure at higher levels.  However, the MACD indicator remains in a bullish crossover, and the moving averages are arranged in a bullish sequence, suggesting that the overall trend remains positive.  Further upside is possible, with the 5-day moving average (MA5) providing support.

Weekly Chart:Gold prices hit a new all-time high of $2740 on Monday before pulling back.  While there are signs of renewed buying interest, the MACD indicator is still in a bearish crossover, suggesting that the correction may not be over.  Caution is advised for those chasing the rally.

Overall:The short-term outlook for gold favors buying on dips with selective selling on rallies.

Key Resistance Levels: 2740, 2745, 2750, 2760

Key Support Levels: 2730, 2720, 2715, 2710

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.