Analysis of today's market

Gold extended its recovery from Tuesday's low, trading at $2,640 on Thursday. With the Federal Reserve expected to further cut U.S. interest rates at its December meeting, and as markets consolidate this expectation, gold is on a bullish trajectory. Lower interest rates are positive for gold as they reduce the opportunity cost of holding non-interest-bearing assets, making them more attractive to investors.

According to Bloomberg, following the 60-day ceasefire agreement reached between Israel and Hezbollah on Tuesday, the gains in gold may be limited due to the easing of geopolitical risks. Skeptics argue that without an end to the hostilities in Gaza, the gains in gold remain unsustainable.

Gold opened at 2637 and has risen to a high of 2741 and fallen to a low of around 2633 since then. Keep an eye on the resistance levels at 2650-2660-2670. If these levels are not breached, gold may test the support levels at 2600-2590-2580.