On Tuesday (September 24th), spot gold continued its volatile upward trend in the Asian market, hitting a new historical high of $2636.01 per ounce and currently trading around $2634.90 per ounce. Analyst Haresh Menghani wrote an article on Tuesday analyzing the technical trend of gold prices.

Menghani wrote that with the daily chart showing a slight overbought situation, the bulls turned cautious after the gold price hit a historic high yesterday. Before continuing the recent upward trend, gold prices may experience consolidation or correction.

Spot gold closed up nearly 0.3% on Monday at $2628.38 per ounce. The gold price hit a record high of $2634.88 per ounce during trading.

Menghani pointed out that due to market speculation that the Federal Reserve will adopt more aggressive easing policies, this has limited the recovery momentum of the US dollar, thereby buffering the downward trend of gold prices.

According to CME's "Federal Reserve Watch" tool, the probability of the Federal Reserve cutting interest rates by 25 basis points by November is 45.2%, and the probability of cutting interest rates by 50 basis points is 54.8%.

Menghani added that in addition, the ongoing geopolitical risks caused by the ongoing conflict in the Middle East, as well as the uncertainty of US politics before the November election and concerns about economic slowdown, should support safe haven gold prices. The path with the least resistance to gold prices is still upward.

Israel launched airstrikes on the so-called Hezbollah weapons bases in southern and eastern Lebanon on Monday, resulting in nearly 500 deaths and increasing the risk of broader conflict in the Middle East.

According to the Associated Press, the Pentagon stated on Monday that as violence in the Middle East increases, the United States will send more troops to the region.

Gold, as a traditional hedge against geopolitical and economic uncertainty, is expected to achieve its best annual performance in 14 years. According to data from the World Gold Council, globally physically backed gold ETFs had a net inflow of 3 metric tons last week.