Analyst: US Government Shutdown and Geopolitical Tensions Drive Gold Price Back Above $4100

October 23rd: During the later Asian session, spot gold rebounded and regained a position above $4100. The ongoing U.S. government shutdown and geopolitical tensions have provided a boost to the gold price. Meanwhile, market expectations of further Fed rate cuts have also supported the price. Traders will be closely observing changes in the trade situation. Previously, due to the easing of trade tensions and a resurgence in U.S. dollar demand, gold witnessed intense selling. Russell Shor, the Senior Market Analyst at Tradu.com, stated that this sell-off seems to mainly be a technical adjustment. Since September, the gold price has been in an overbought state, prompting investors to take profits. Despite the pullback, gold prices have increased by approximately 55% year-to-date, and the long-term major uptrend remains intact. One of the reasons for the gold sell-off was profit-taking ahead of the release of Friday's CPI data. With the U.S. government shutdown halting the release of economic data, the focus is now on the U.S. September CPI inflation data scheduled for Friday. If the data exceeds expectations, it may temporarily boost the dollar and exert pressure on the gold price. (Fx678)