Analyst: Ongoing US government shutdown and geopolitical tensions push gold prices back above $4,100

BlockBeats News, October 23, spot gold rose again at the end of the Asian session, returning above $4,100. The ongoing U.S. government shutdown and heightened geopolitical tensions have pushed gold prices higher, while expectations of further interest rate cuts by the Federal Reserve have also provided support for gold prices.

Traders will closely monitor changes in trade conditions. Previously, gold experienced heavy selling due to easing trade tensions and renewed demand for the U.S. dollar. Russell Shor, Senior Market Analyst at Tradu.com, stated that this round of selling appears to be mainly a technical adjustment, as gold prices have been in an overbought state since September and investors are taking profits. Despite the pullback, gold prices have still risen by about 55% so far this year, and the long-term primary uptrend remains intact.

Profit-taking before the release of Friday's CPI data is also one of the reasons for the sell-off in gold. Due to the U.S. government shutdown, economic data releases have been halted, making the upcoming U.S. September CPI inflation data on Friday highly anticipated. If the data comes in higher than expected, it could boost the U.S. dollar in the short term and put pressure on gold prices. (Golden Ten Data)