Gold price prediction: Why are gold prices rallying again and what's the outlook? Top levels investors should watch out for

Gold Price Outlook - Gold prices are rallying due to expectations of US Federal Reserve rate cuts and increased gold buying from China [5][6] - Spot gold was trading at $4,096 with a daily gain of 2.34%, while MCX Gold December contract was up 2.07% at Rs 123,707 [5] - Analysts recommend buying the dip rather than chasing the rally, with short-term resistance expected around $4,160 [8][9] US Economic Context - The ongoing US government shutdown is expected to end soon, which has boosted risk appetite among investors [5][8] - Federal Reserve officials have differing views on interest rates, with some urging caution on further cuts due to potential inflation pressures [5][7] - The US Dollar Index was at 99.72, up 0.15% for the day, while US yields showed slight increases [5][7] China's Gold Market - China's gold consumption dropped 7.95% year-on-year to 682.73 tons in the January-September period [6] - The People's Bank of China has been buying gold for the 12th consecutive month, with official reserves increasing to 74.09 million ounces [6][7] - Domestic gold ETF holdings in China rose significantly, indicating strong local demand despite the overall consumption decline [7] Market Dynamics - Total known global gold ETF holdings increased to 97.24 million ounces, up 17.36% this year, although they have seen a decline over the past three weeks [7] - COMEX gold eligible inventory is at its lowest level since April, indicating tighter supply conditions [7] - Silver prices also surged, with MCX Silver December contract rising to Rs 153,650, suggesting strong performance in precious metals [8]