My Futures Gold Weekly Review. When Will 'I Gold You 3,000' Eventually Happen?

What happened?

During the week of October 7–11, 2024, Gold Futures experienced a mix of cautious trading and significant price movements, ultimately closing the week on a bullish note.

• Monday saw range-bound trading as the market awaited key U.S. data, with prices moving between $2,657 and $2,679.

• Tuesday brought a 1.15% drop due to strong U.S. economic data, pushing prices down to $2,623, offering quick profit opportunities for short sellers.

• Wednesday featured modest recovery, with prices stabilizing around $2,626, though traders faced choppy conditions.

• Thursday saw bullish momentum build, as prices climbed 0.51% to $2,639, driven by weakening U.S. dollar sentiment.

• Friday was the strongest session, with prices surging 1.40% to $2,676 following weaker U.S. inflation data, offering profitable breakout trades.

Overall, traders benefited most from the high volatility during the U.S. sessions, while tighter price action in the Asian and European sessions favored short scalping .

Outlook for next week:

For the next week, the outlook for Gold Futures will likely be shaped by several key factors:

1. U.S. Economic Data: Traders will closely monitor upcoming U.S. inflation figures, particularly the Consumer Price Index (CPI), which could either reinforce expectations for further Federal Reserve rate cuts or slow down bullish momentum. A weaker CPI would likely weaken the U.S. dollar, providing continued support for gold.

2. Geopolitical Tensions: Ongoing geopolitical risks, particularly in the Middle East, are likely to keep demand for gold high as a safe-haven asset. Any escalation could lead to further price surges.

3. Technicals: Gold is near key resistance levels around $2,680–$2,700, so traders will watch for a breakout above these levels, which could trigger further buying. Conversely, if gold fails to break this resistance, we may see a pullback to test the $2,600–$2,625 support zone.

4. Market Sentiment: Investor sentiment will remain critical, particularly if we see continued central bank demand for gold. Any signals of increased purchases or geopolitical uncertainty could push gold higher.

In short, expect continued volatility, especially in reaction to key economic data and global news, with a bullish bias if inflation remains subdued and geopolitical tensions persist.

Bonus Thoughts:

Next week’s Gold Futures outlook will be influenced by critical technical levels and fundamental triggers:

• Key Resistance: Watch for a breakout above $2,680-$2,700. A sustained push through this zone could lead to further upside momentum, with potential targets near $2,730.

• Support Zones: If a pullback occurs, expect support around $2,625-$2,600. A break below this range could signal a bearish shift.

• Catalysts: U.S. CPI data will be crucial. Weaker-than-expected inflation would likely weaken the USD, boosting gold. Geopolitical risks will also keep volatility elevated, favoring sharp intraday movements.

Short-term traders should remain cautious, as volatile swings are likely, especially during U.S. sessions.