Gold Price Update: As Expected Gold Remains Positive. Now What?

Gold price posted over two and half percent lats week. Prices reached an unprecedented peak, soaring above 67800.  On the monthly basis, yellow metals jumped by eight percent, marking a significant uptick for what is typically considered a conservative investment. Several key developments support this rally:

The recent upward move in the prices soard in a anticipations that global financial regulators will lower lending costs within the year. Furthermore, escalating geopolitical tensions have bolstered gold’s appeal as a safe-haven asset.

Further, The US Bureau of Economic Analysis (BEA) revealed that the Core PCE was lower than expected in February, coming at 0.3% MoM, below the previous month’s data. Yearly data cooled from 2.9% to 2.8%, as estimated by the consensus. Headline inflation came at 0.3% below January’s forecasts, and in the 12 months to February, it was higher than the previous month at 2.5%, up from 2.4%.

While the data eases the Fed, policymakers remain cautious. Other inflation indicators, such as the Consumer Price Index (CPI) and the Producer Price Index (PPI), show signs that inflation is taking root above the 3 percent threshold.

Technical Outlook – Gold Price

The gold price continued its sharp rise for the second week in a row. Last week, gold price rose 2.76% to 67677 after hitting a record high of 67850, compared to last week’s 65858.00.

From last week’s view, prices remained above the important long base of 65300 and touched our forecast of 66000-66000-663.

On the chart above, the bullish candlestick formation still shows a strong bullish trend. However, after the recent increase, prices may face resistance at 67895.00 before continuing the rally.

Therefore, it is expected that prices may stabilise in the range of 67895-67500-67000 in the coming days. But on the downside, crucial support can be seen at 66720, and a little below that, prices may turn again to 66040-65800.

Commodity Samachar
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