By NewsBlogger One sentence summary – Gold prices have continued to gain momentum, trading near record highs, driven by expectations of interest rate cuts and global economic uncertainty, with traders closely monitoring key economic data releases for further insights into market trends.
At a glance
- Gold prices trading near record highs
- Surge in gold prices due to expectations of interest rate cuts
- Traders monitoring 14-day relative strength index of spot gold
- Investors focused on Federal Reserve Chair Jerome Powell’s upcoming testimony
- Stability of gold prices attributed to global economic uncertainty and geopolitical tensions
The details
Gold prices have continued to gain momentum, trading near record highs.
In the latest market update, spot gold was up 0.3% to $2,132.80 per ounce, while U.S. gold futures remained steady at $2,141.60.
Bullion has also reached record highs in other major currencies, reflecting the global appeal of gold as a safe-haven asset.
The surge in gold prices
can be attributed to expectations of interest rate cuts, which have increased the attractiveness of precious metal to investors.
In addition to the rise in gold prices, the world’s largest cryptocurrency, bitcoin, also reached a record high before retreating.
This indicates a broader trend towards alternative investments in light of economic uncertainties.
Traders are closely monitoring
the 14-day relative strength index of spot gold, which currently stands at 78, above ‘overbought’ levels.
This suggests a potential correction in the near future.
Market analysts predict a 72% chance for a June Fed rate cut, further bolstering the bullish sentiment towards gold.
Investors are particularly focused on
Federal Reserve Chair Jerome Powell’s upcoming congressional testimony on the U.S. economy, as his remarks, could provide key insights into the Fed’s rate-cut path and influence USD price dynamics.
UBS has forecasted spot gold will rise to $2,250 per ounce by the end of 2024, signaling long-term optimism in the gold market.
Alongside gold, other precious metals have also seen price movements, with spot silver rising 0.4% to $23.77, platinum up 0.8% to $888.00 per ounce, and palladium gaining more than 1% to $958.05.
Overall, the stability of gold prices near record highs can be attributed to global economic uncertainty, expectations of early interest rate cuts, and geopolitical tensions.
Traders are closely monitoring key economic data releases, such as the US ADP report on private-sector employment and JOLTS Job Openings data, for further insights into market trends.
The corrective slide in gold prices may present buying opportunities, with key support levels identified around $2,100 and strong resistance near $2,142-2,144.
Continued buying momentum could push gold toward the psychological mark of $2,200 while downside risks remain limited.
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| uk.investing.com |
|---|
| - Gold prices gained on Wednesday, trading near the previous session's record highs - Spot gold was up 0.3% to $2,132.80 per ounce - U.S. gold futures were steady at $2,141.60 - Bullion has reached record highs in other major currencies - Expectations of interest rate cuts have increased, boosting the appeal of gold - The world's largest cryptocurrency, bitcoin, also reached a record high before retreating - Spot gold's 14-day relative strength index is at 78, above 'overbought' levels - Traders see a 72% chance for a June Fed rate cut - Investors are focused on Powell's congressional testimony on the U.S. economy - UBS forecasts spot gold to rise to $2,250/oz by end-2024 - Spot silver rose 0.4% to $23.77 - Platinum was up 0.8% to $888.00 per ounce - Palladium gained more than 1% to $958.05 |
| fxstreet.com |
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| - Gold price (XAU/USD) trades with a mild negative bias during the early part of the European session - Traders opt to lighten their bullish bets after recent rally and ahead of Federal Reserve (Fed) Chair Jerome Powell's congressional testimony - Powell's remarks will be scrutinized for cues about the Fed's rate-cut path, influencing USD price dynamics - Traders will confront the release of the US ADP report on private-sector employment and JOLTS Job Openings data - Growing acceptance that the Federal Reserve (Fed) will start cutting interest rates in June keeps USD bulls on the defensive - Geopolitical tensions and concerns about a slowdown in China contribute to limiting downside for XAU/USD - Relative Strength Index (RSI) on daily chart is flashing overstretched conditions, cautioning bullish traders - Corrective slide likely to find support near $2,100 round figure - Further decline may be seen as a buying opportunity, limited near $2,064-2,062 strong horizontal resistance breakpoint - $2,142-2,144 area, or all-time peak retested on Tuesday, could offer resistance and cap upside for Gold price - Follow-through buying could push yellow metal towards $2,200 psychological mark |
| uk.investing.com |
|---|
| - Gold prices in Asia remained stable near record highs due to global economic uncertainty and expectations of early interest rate cuts - Spot gold rose 0.2% to $2,118.59 an ounce, while gold futures were close to record highs - Demand for gold increased due to signs of economic cooling in the U.S., recession in Europe and Japan, and slow growth in China - Anticipation of U.S. interest rate cues from Fed Chair Jerome Powell and nonfarm payrolls data on Friday impacted gold prices - High U.S. interest rates have limited gold price gains by increasing the opportunity cost of investing in gold - Platinum futures fell 0.7% to $896.60 an ounce, while silver futures rose 0.2% to $24.040 an ounce - Copper futures fell 0.1% to $3.8507 a pound in response to underwhelming economic signals from China - China set a 5% GDP target for 2024, the same as 2023, and offered policy support for the economy, but the lack of clear measures inspired little optimism - Data showed that China's services sector grew less than expected in February, indicating continued economic weakness. |
