Why did gold prices surge and hit a new ATH over the weekend ?Gold News:
🔆 New US Tax Policy : The Trump administration announced plans to impose a 25% tariff on imports from Mexico and Canada. This increased concerns about trade tensions, causing investors to seek gold as a safe-haven asset.
🔆 Weak US economic data : US GDP in the fourth quarter of 2024 increased by only 2.3%, lower than the forecast of 2.6%, raising expectations that the US Federal Reserve (Fed) may have to cut interest rates in the coming months. This weakened the USD, supporting gold prices.
🔆 US bond yields fell : The yield on the 10-year US Treasury bond maintained its downward trend to 4.54%, making gold more attractive than fixed-income assets.
🔆 Global Risk Aversion : In addition to the uncertainties from the US, the market also reacted to the geopolitical situation in the Middle East and Europe, with news of escalating tensions between Iran and Israel.
🔆All these factors pushed the price of gold to a record high, reaching a new peak of $2,817/ounce
Technical analysis and commentary:
🔆The current gold price is still maintaining an upward trend, however, the RSI shows that gold is correcting down, which could create a stronger upward momentum. Economic data is leaning towards buyers and there is no clear sign that sellers will join in. The analysis is based on support and resistance levels combined with Fibonacci to come up with a reasonable plan.
Resistance: $2,817, $2,838, $2,850
Support: $2,788, $2,765, $2,734
Thank you for reading my comment: "FM"