By NewsBlogger Gold prices have reached a new all-time high due to a drop in interest rates and increased safe-haven demand, with analysts predicting further increases in the next twelve months.
At a glance
- Gold prices have reached another all-time high, rising for the eighth consecutive day.
- Spot gold prices are up 0.5%, breaking the US$2,170 an-ounce mark for the first time.
- The increase in gold prices is attributed to a drop in interest rates, pushing investors towards safer assets.
- Analysts predict that gold could reach £2,300 within the next twelve months.
- Tensions between Moscow and NATO and the ongoing conflict in the Middle East have fueled the demand for gold as a safe-haven asset.
The details
Gold prices have reached another all-time high, rising for the eighth consecutive day and enjoying their best week in five months.
Spot gold prices are up 0.5%, breaking the US$2,170 an-ounce mark for the first time.
The increase in gold prices is attributed to a drop in interest rates, pushing investors towards safer assets.
Analysts predict that gold could reach £2,300 within the next twelve months.
The tension between Moscow and NATO, along with the ongoing conflict in the Middle East, has fueled the demand for gold as a safe-haven asset.
Gold is not considered a crowded trade or a bubble, with the underlying uptrend in gold remaining steady.
Despite recent gains, gold’s performance is viewed as less dramatic compared to Bitcoin and US tech stocks.
Expectations for a rate-cut decision by the Federal Reserve in the June monetary policy meeting have further boosted the appeal for gold.
Safe-haven demand for gold has improved due to uncertain global financial conditions. A decline in US Treasury yields has reduced the opportunity cost of holding non-yielding assets like gold.
The US Dollar Index has fallen to a monthly low amid economic uncertainty, influencing the direction of the US dollar.
Gold price hit a new all-time high at $2,161.60 after breaking resistance levels, with expectations for it to remain bullish.
However, a corrective move is possible as momentum oscillators suggest overbought conditions.
In Friday’s early New York session, the gold price rallied to a fresh all-time high above $2,180. Yields on 10-year US bonds fell after the release of the US NFP data, prompting expectations that the Federal Reserve would reduce interest rates.
Annual wage growth decelerated, with the US Dollar Index refreshing its seven-week low.
Fed Chair Jerome Powell indicated that the central bank is close to gaining evidence that inflation will return sustainably to the 2% target.
Gold’s price is trading in uncharted territory and is expected to remain broadly bullish. Major support levels are identified at $2,145 and $2,088. Momentum oscillators have reached overbought levels, signaling a potential corrective move in the asset.
The 14-period Relative Strength Index has exceeded overbought thresholds, indicating caution for new bids.
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| uk.investing.com |
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| – Gold prices have hit another all-time high – Prices have risen for the eighth consecutive day – Gold is enjoying its best week in the last five months – Spot gold prices are up 0.5% – Gold broke the US$2,170 an-ounce mark for the first time – A drop in interest rates is pushing investors to find safer assets – Analysts predict gold could reach £2,300 within the next twelve months – Adrian Ash, director of research at BullionVault, commented on the rise in gold prices – Expectations for US rates have eased back – Sword-rattling between Moscow and Nato has worsened – The Middle East conflict continues – Gold is not considered a crowded trade or a bubble – The underlying uptrend in gold remains steady – Gold’s recent gains are less dramatic compared to Bitcoin and US tech stocks |
| fxstreet.com |
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| – Gold price (XAU/USD) has been on a seven-day winning streak, reaching all-time highs near $2,160. – Expectations for a rate-cut decision by the Federal Reserve (Fed) in the June monetary policy meeting have increased the appeal for Gold. – Safe-haven demand for Gold has improved due to uncertain global financial conditions. – A decline in US Treasury yields has reduced the opportunity cost of holding non-yielding assets like Gold. – Yields on interest-bearing government bonds have dropped as Fed Chair Jerome Powell mentioned rate cuts may be appropriate this year. – The US Dollar Index (DXY) has fallen to a monthly low near 103.20 amid economic uncertainty. – The US Dollar’s direction will be influenced by the US Nonfarm Payrolls (NFP) data for February and Fed Chair Powell’s testimony before Congress. – Gold price hit a new all-time high at $2,161.60 after breaking resistance levels. – Gold price is expected to remain bullish, but a corrective move is possible as momentum oscillators show overbought conditions. – The 14-period Relative Strength Index (RSI) has reached 82.00, the highest level in two years, suggesting caution in considering new bids. |
| fxstreet.com |
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| – Gold price (XAU/USD) rallied to a fresh all-time high above $2,180 in Friday’s early New York session – Yields on 10-year US bonds fell to 4.04% after the release of the US NFP data – A sharp slowdown in wage growth and a higher Unemployment Rate is expected to prompt market expectations for the Federal Reserve (Fed) to reduce interest rates in the June policy meeting – The United States Bureau of Labor Statistics (BLS) reported that the Unemployment Rate rose to 3.9% – Nonfarm Payrolls (NFP) for February were higher at 275K against expectations of 200K – Monthly wages grew slightly by 0.1% against a 0.6% increase in January – Annual wage growth decelerated to 4.3% from expectations and a prior reading of 4.4% – The US Dollar Index (DXY) refreshed its seven-week low around 102.40 – Fed Chair Jerome Powell indicated the central bank is close to gaining evidence for inflation returning sustainably to the 2% target – Gold price carried forward its winning streak for an eighth trading session on Friday – The precious metal refreshed its all-time highs above $2,180 after breaking above the horizontal resistance line plotted from the December 4 high near $2,145 – Gold price is trading in uncharted territory and is expected to remain broadly bullish – A corrective move in the asset cannot be ruled out as momentum oscillators have reached the overbought territory – The 14-period Relative Strength Index (RSI) has reached 83.00, well above the 70.00 threshold, signaling overbought levels and pointing to some correction ahead – On the downside, the December 4 high near $2,145 and the December 28 high at $2,088 will act as major support levels |
