Today, the precious metal is attracting some buyers and appears to have interrupted its six-day losing streak. However, the upward momentum lacks conviction, and the rise is likely to lose momentum due to growing expectations of a 25 basis point rate cut by the Federal Reserve in November. This supports the U.S. dollar, maintaining its recent strength at an eight-week high, creating a headwind for gold.
Technical Analysis: The break below the $2,630 level is considered a bearish trigger. Nevertheless, the oscillators on the daily chart remain in positive territory despite losing strength. Moreover, the price has managed to stay above the key psychological level of $2,600. Therefore, it would be prudent to wait for a confirmed break below this level before positioning for deeper losses. The XAU/USD pair could then continue its decline toward the next major support at $2,560, heading toward the $2,532 level, and eventually descending to the psychological level of $2,500.
On the other hand, the breakout point at $2,630 now serves as the nearest resistance for any upward movement. Any further rise may present a selling opportunity and would likely be capped near the significant horizontal barrier of $2,656. Sustained strength beyond this point could lift gold prices into the $2,672 supply zone, above which the bulls could attempt to challenge the historical high reached in September. Following that, the round level of $2,700 could extend the multi-month upward trend if this level is breached.