GoldLong
Gold at new highs
By Ion Jauregui - ActivTrades Analyst
Spot gold hit a new all-time high on Friday at the European open, surpassing the peak recorded in October 2024. The price of the precious metal climbed to USD 2,800.78 per ounce in this first hour, driven by growing expectations that the Federal Reserve will initiate interest rate cuts in 2024 and continued support from central banks. Bullion has accumulated a year-to-date gain of more than 7.80%, benefiting from a macroeconomic environment that favors safe-haven assets. Investors are discounting a 25 basis point cut in May, reflecting the perception that the Fed has concluded its monetary tightening cycle. This situation reduces the opportunity cost of holding gold, which has generated greater demand for the asset.
Added to this is the strong accumulation of the metal by central banks, with China leading the way, which has increased its gold reserves for 13 consecutive months through October 2024. This behavior reinforces confidence in gold as a long-term value asset. Growing geopolitical uncertainty has also helped to consolidate demand for precious metals, as investors seek safe havens from potential economic or political crises. Elsewhere, the Dollar Index posted a 0.2% decline yesterday, while other precious metals such as silver, platinum and palladium also showed gains. Looking ahead, gold's performance will continue to depend on the Fed's monetary policies and the evolution of institutional demand, maintaining a positive outlook for the safe-haven asset.
Technical analysis
In October last year, we anticipated a growth target for gold towards $2,850. However, due to different geopolitical circumstances, gold has maintained a sideways movement during the last quarter of 2024. Following the appointment of Donald Trump, the markets have experienced high volatility, which has again pushed the gold price upwards.
Looking at the chart, key resistance was pierced hard in yesterday's session. The RSI index reached an overbought level of 72.92% and peaked at 82.74%, indicating significant buying pressure. Currently, sentiment has lost some momentum, and the price remains in a sideways range.
The general Point of Control (POC) indicates a price zone at $2,753.40. However, the recent break of the key resistance at $2,782.37 suggests that this level could become a new support. Looking at the daily chart, if we analyze the long-term trend, the shift within the bullish range indicates that gold could reach $3,000 without much difficulty in the coming months, especially if expectations of interest rate cuts are confirmed and institutional demand remains strong. The macroeconomic and geopolitical context continues to play a crucial role in the evolution of the gold price. With central banks increasing their reserves and investors seeking protection against market volatility, gold remains one of the strongest bets for the coming months.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Spot gold hit a new all-time high on Friday at the European open, surpassing the peak recorded in October 2024. The price of the precious metal climbed to USD 2,800.78 per ounce in this first hour, driven by growing expectations that the Federal Reserve will initiate interest rate cuts in 2024 and continued support from central banks. Bullion has accumulated a year-to-date gain of more than 7.80%, benefiting from a macroeconomic environment that favors safe-haven assets. Investors are discounting a 25 basis point cut in May, reflecting the perception that the Fed has concluded its monetary tightening cycle. This situation reduces the opportunity cost of holding gold, which has generated greater demand for the asset.
Added to this is the strong accumulation of the metal by central banks, with China leading the way, which has increased its gold reserves for 13 consecutive months through October 2024. This behavior reinforces confidence in gold as a long-term value asset. Growing geopolitical uncertainty has also helped to consolidate demand for precious metals, as investors seek safe havens from potential economic or political crises. Elsewhere, the Dollar Index posted a 0.2% decline yesterday, while other precious metals such as silver, platinum and palladium also showed gains. Looking ahead, gold's performance will continue to depend on the Fed's monetary policies and the evolution of institutional demand, maintaining a positive outlook for the safe-haven asset.
Technical analysis
In October last year, we anticipated a growth target for gold towards $2,850. However, due to different geopolitical circumstances, gold has maintained a sideways movement during the last quarter of 2024. Following the appointment of Donald Trump, the markets have experienced high volatility, which has again pushed the gold price upwards.
Looking at the chart, key resistance was pierced hard in yesterday's session. The RSI index reached an overbought level of 72.92% and peaked at 82.74%, indicating significant buying pressure. Currently, sentiment has lost some momentum, and the price remains in a sideways range.
The general Point of Control (POC) indicates a price zone at $2,753.40. However, the recent break of the key resistance at $2,782.37 suggests that this level could become a new support. Looking at the daily chart, if we analyze the long-term trend, the shift within the bullish range indicates that gold could reach $3,000 without much difficulty in the coming months, especially if expectations of interest rate cuts are confirmed and institutional demand remains strong. The macroeconomic and geopolitical context continues to play a crucial role in the evolution of the gold price. With central banks increasing their reserves and investors seeking protection against market volatility, gold remains one of the strongest bets for the coming months.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.