Gold's price momentum continues, with a Troy ounce of the precious metal touching a new record high, standing close to $2115.00 as of Tuesday. The surge in gold prices can be attributed to a confluence of factors that favor its ascent.
Key drivers behind the rally include the diminishing yields on US government bonds and a softening in the stance of the US dollar. Moreover, there's growing anticipation in the markets regarding the Federal Reserve's expected transition towards a more accommodative monetary policy stance. Such conditions are traditionally beneficial for gold, as it often inversely correlates with the performance of the US dollar.
Additionally, robust physical demand from global central banks has played a significant role in underpinning gold's price surge, indicating a strong confidence in the metal as a reserve asset.
Technical Analysis of XAU/USD
The H4 chart analysis for XAU/USD reveals the formation of a consolidation range around the 2048.35 level. A break above this range could signal the continuation of the upward trend, potentially reaching 2121.21. Upon achieving this milestone, a correction back towards 2048.35 may occur, setting the stage for a further rise to 2196.07, which is identified as a local target. The MACD indicator corroborates this bullish scenario, with its signal line positioned above zero and indicating a strong upward momentum.
On the H1 chart, the price has established a consolidation range near 2083.83. An upward breakout from this consolidation could lead to a climb towards 2121.21. Subsequently, a correction to 2083.81 may take place, marking the initial target of this correction phase. This technical outlook is supported by the Stochastic oscillator, which, despite being below the 80 mark, is poised for a downward movement towards 20, suggesting potential fluctuations within the ongoing bullish trend.
By RoboForex Analytical Department
Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Gold Reaches New Peak Amid Favorable Conditions: What's Next?
Published 03/05/2024, 06:09 AM
Gold Reaches New Peak Amid Favorable Conditions: What's Next?
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.