Gold hit a new record high in trading on Monday, building on an already impressive start to 2024. The precious metal has now gained over 23% from its yearly low in February and over 7.5% this month, these moves coming despite risk trades and stocks hitting all-time highs as well.
The latest move came early on Monday morning as haven trades hit the market after newswires reported the helicopter crash in Iran that claimed the life of Iranian President Ebrahim Rais, and Gold still remains trading at elevated levels. Analysts have been impressed with the move in the shiny metal this year as fundamentals in a positive risk world would normally see Gold under pressure. However, the recent pivot from the Federal Reserve Bank and probably more influentially, Gold purchases by banks worldwide as they diversify their portfolios has led to a perfect storm for Gold bulls.
Looking ahead to the rest of the week’s trading and tonight’s FOMC Meeting Minutes could be crucial for the next move in Gold. Any signs that rate cuts could be coming thicker and faster than is currently priced in should see more upside, however, if, as many Fed members have been advising rates are likely to remain ‘higher for longer’ then expect to see some dollar buying hit the market and Gold to retreat to recent levels.
Resistance 2 : 2,500.00 – Psychological Level
Resistance 1 : 2,449.89 – All-time High
Support 1 : 2,381.00 – 200-Day Moving Average
Support 2 : 2,345.00 – Trendline Support
