24K99 News: On Friday (September 20th),spot gold surged nearly $35 and hit a historical high.

FXStreet analyst Eren Sengezer wrote an article on Friday,analyzing the trend of gold prices for the following week.

Spot gold closed up $34.42 on Friday,a 1.33% increase,at $2,620.91 per ounce.

The price of gold touched a high of $2,625.81 per ounce on Friday,setting a historical record.

Sengezer noted that due to the Federal Reserve's decision to cut the policy rate by 50 basis points,the US dollar faced significant selling pressure,and the gold price rebounded to a historical high above $2,600 per ounce.

Sengezer stated that the recent technical outlook indicates that gold prices are near overbought.

Speeches by Federal Reserve officials and personal consumption expenditure (PCE) inflation data may affect next week's gold prices.

The PCE price index next Friday could be the next significant catalyst for gold prices.

The Federal Reserve cut rates by 50 basis points on Wednesday,initiating a monetary easing cycle,boosting the investment appeal of non-interest-bearing gold.

As investors also seek to hedge against uncertainties caused by long-term conflicts in the Middle East and other regions.

TD Securities commodity strategist Daniel Ghali said that the Federal Reserve has just made a substantial rate cut,initiating an easing cycle,so there is still some buying in the market.

Forex.com analyst Fawad Razaqzada released a report stating: "Geopolitical risks,such as ongoing conflicts in Gaza,Ukraine,and elsewhere,will ensure that the demand for gold as a safe-haven asset is maintained."

In addition,the continued weakness of the US dollar makes gold priced in dollars cheaper for buyers using other currencies,providing additional momentum.

Next week,the US PCE inflation is coming.

In terms of US economic data,S&P Global will release the flash manufacturing and services Purchasing Managers' Index (PMI) for September on Monday next week.

Sengezer pointed out that if the manufacturing PMI recovers above 50 and the services PMI remains stable above 50,investors may be encouraged by a strong economic outlook.

In this case,the dollar may remain resilient against its major competitors,leading to a downward correction in gold.

On the other hand,PMI data below expectations may have the opposite effect on the dollar.

On Thursday next week,the Bureau of Economic Analysis (BEA) will release the final revision of the second-quarter Gross Domestic Product (GDP),which is unlikely to trigger a market reaction.

On Friday next week,the Bureau of Economic Analysis will release the August Personal Consumption Expenditure (PCE) price index,which is the Federal Reserve's preferred inflation indicator.

Compared to earlier this year,investors' concerns about inflation have diminished.

Sengezer said that nevertheless,if the core PCE price index increases by 0.3% or more on a month-over-month basis,it may boost the dollar.

On the other hand,weak data may immediately put pressure on the dollar.

As the Federal Reserve's "quiet period" is about to end,investors will also closely monitor the statements of policymakers.

According to the Chicago Mercantile Exchange's "FedWatch" tool,the market expects a nearly 70% chance that the Federal Reserve will cut the policy rate by at least another 75 basis points by 2024.

Sengezer said that if Federal Reserve officials downplay the possibility of another substantial rate cut this year,market positions suggest that the dollar may rebound,dragging gold lower.

If policymakers consider another 50 basis point rate cut at the upcoming meeting,the dollar may struggle to find demand.

Technical outlook for gold next week: Sengezer pointed out that this week,the Relative Strength Index (RSI) on the daily chart rose to 70.

Gold prices remain in the upper half of the upward channel since the end of June.

The upper boundary of this channel at $2,630 per ounce forms a key resistance.

Sengezer warned that the last time the daily RSI touched 70,gold prices climbed above the upper boundary of the upward channel in mid-July,which was followed by a significant correction.

Therefore,buyers may avoid going higher in the short term and allow gold to correct downward after breaking through $2,630 per ounce and becoming overbought.

On the downside,$2,600 per ounce (the round number level) forms short-term support,with the next support at $2,570 per ounce (the midpoint of the upward channel) and $2,530 per ounce (where the 20-day simple moving average is located).

Sengezer finally pointed out that since gold prices are already in an unknown range,it is difficult to set near-term upward targets.

If investors ignore the overbought condition,$2,700 per ounce may be seen as the next resistance level.