2K99 News: On Thursday (September 19th), spot gold prices surged by more than 1%, approaching $2,595 per ounce at one point.

Analysts pointed out that the US dollar fell back after the Federal Reserve's decision, coupled with geopolitical tensions, which boosted gold prices.

A heavyweight message came from the ceasefire negotiations in the Middle East.

The latest exclusive report stated that US officials acknowledged Biden's inability to achieve a ceasefire in Gaza.

Spot gold prices closed up $27.31 on Thursday, a 1.07% increase, at $2,586.49 per ounce; the highest price touched during the session was $2,594.90 per ounce.

FXStreet analyst Christian Borjon Valencia noted that gold prices rose on Thursday after the Federal Reserve announced a 50 basis point rate cut, entering an easing cycle.

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Traders ignored the rise in US Treasury yields, and gold prices are still heading towards $2,600 per ounce.

The US dollar index closed down 0.3% on Thursday, reporting 100.64; the index had touched 101.45 in the Asian morning session on Thursday.

The Federal Reserve lowered the benchmark policy rate by 50 basis points on Wednesday, to 4.75%-5.00%.

The Fed expects the benchmark rate to fall another 50 basis points by the end of this year, a full 100 basis points next year, and another 50 basis points in 2026.

Allegiance Gold's Chief Operating Officer, Alex Ebkarian, stated, "The market is considering more substantial and more rate cuts because we have deficits in both fiscal and trade, and this will further weaken the overall value of the US dollar."

UBS believes that gold prices can rise further and expects a gold price target of $2,700 per ounce before the middle of 2025.

UBS said, "Driven by recent risk factors, we expect the demand for gold ETFs to accelerate in the coming months."

Tensions in the Middle East and significant news from ceasefire negotiations.

Ebkarian said, "If you combine geopolitical risks with our current deficits, low-yield environment, and a weak US dollar, the combination of all these factors will lead to a rise in gold prices."

Gold is seen as a safe-haven asset during times of political and economic uncertainty, and it often thrives in a low-interest-rate environment because it does not bear interest.

An exclusive report released locally in the United States on Thursday stated that for months, senior US officials have been saying that a ceasefire and hostage release agreement are within reach, but now they privately admit that they do not expect Israel and Hamas to reach an agreement before the end of President Biden's term.

The report pointed out that the Biden administration will not stop seeking an agreement, believing it is the only way to end the Gaza war and prevent a rapid escalation of conflict between Israel and Hezbollah in Lebanon.

The White House had previously stated that the warring parties had agreed on "90%" of the agreement text, so there is still hope for a breakthrough.

However, several senior officials from the White House, State Department, and Pentagon believe that the warring parties will not agree to the current framework.

An official from an Arab country said shortly after the pager attack encountered by Hezbollah: "There is no chance to achieve this goal now.

Everyone is waiting and watching the situation after the election.

The result will determine what the next government can do."

Failure to reach an agreement would damage Biden's political legacy.

According to the Gaza Health Ministry, the war has already killed more than 40,000 Palestinians, most of whom are women and minors.

US National Security Council spokesperson John Kirby told reporters on Wednesday that despite the government's months-long statement that an agreement is imminent, the prospect of reaching a final agreement is "daunting."

Kirby said, "We are not any closer to that goal now than we were a week ago."

According to the latest report from AFP, Lebanon's Public Health Minister Firas Abiad said that the communication equipment explosion incidents that occurred in multiple places in Lebanon on September 17th and 18th have caused 37 deaths and nearly 3,000 injuries.

After the pager explosion incident in Lebanon on September 17th, walkie-talkie explosion incidents occurred in multiple places in Lebanon on September 18th.

After the incident, Hezbollah attributed the explosion to Israel, but Israel has not made any public comments on this.

Lebanese Prime Minister Najib Mikati called on countries on September 19th to take a "firm stance" at the ongoing 79th session of the United Nations General Assembly to stop Israel's "aggression" against Lebanon.

Iranian President Pezhikchiyan said on social media on September 19th that the communication equipment explosion incident in Lebanon is an act of terrorism, Iran condemns this crime, and the culprits will definitely be punished.

The commander of the Islamic Revolutionary Guard Corps, Hussein Salami, said on the same day that Israel will face a "strong response from the resistance front."

Hamas issued a statement on September 19th, thanking Hezbollah for its support, and said that Hezbollah's firm stance "frustrated Israel's attempts to undermine the resistance movement in the Gaza Strip."

How to trade gold?

FXStreet analyst Christian Borjon Valencia pointed out that the upward trend of gold prices remains unchanged, but after the "shooting star" pattern on Wednesday, if buyers want to continue to conquer the $2,600 per ounce level, they must challenge the highest point of this year so far at $2,599 per ounce.

Valencia said that the momentum is in favor of buyers.

The Relative Strength Index (RSI) is rising in the bullish area but is not in the overbought area.

Therefore, the path of least resistance for gold prices is upward.

Valencia said that the first resistance level for gold prices is $2,599 per ounce, followed by the $2,600 per ounce level.

If it strengthens further, buyers may challenge the psychological levels of $2,650 per ounce and $2,700 per ounce.

On the downside, Valencia added that if gold prices break below the low of $2,556 per ounce on September 13th, the next support level will be $2,550 per ounce.

Once the above level is breached, the next target will be the high of $2,531 per ounce on August 20th (which has now become a support level), followed by the low of $2,485 per ounce on September 6th.