Gold is trading around $2,655. It has recently hit this level after a strong upward trend over the past few months. The changes in monetary policy have played a key role in pushing gold prices higher as investors seek stability in more secure assets, especially during periods of financial uncertainty.
Central banks from countries like China, India, and Russia have been increasing their XAUUSD reserves significantly. This rise in demand has contributed to pushing prices up, as gold remains a popular choice for protecting against inflation and financial instability. The consistent purchasing by these banks reflects gold’s ongoing role as a reliable asset during times of economic uncertainty.
The most recent resistance is around $2,670, where the price struggled to break through. This level will be crucial to watch in the coming days.
Further resistance lies at $2,700, which could act as the next challenge for bulls if the price continues to rise.
The immediate support level after gold broke above it earlier in the month is $2,600. If gold faces a correction, this could be a strong foundation for buyers to step back in.
$2,525 is a key support zone held in previous months. A break below this level could indicate a stronger correction is underway.
$2,472 is a deeper support, which could come into play if market sentiment turns bearish.
The recent candlestick shows a slight rejection from the highs, indicating some selling pressure near the $2,670 resistance. This could signal a temporary pullback or consolidation before the next move.
A small correction towards $2,600 wouldn’t be surprising, given the upward movement. This would likely be seen as a buying opportunity in a bullish market.
Trend Direction on the Gold daily chart shows a clear uptrend, with higher highs and higher lows. This is supported by strong buying momentum, especially after breaking key resistance levels.
Global uncertainties and economic shifts favour gold, so the overall sentiment remains bullish. If external factors, such as interest rate cuts, continue to favour gold, we may see further upward movements beyond $2,670.
This post was last modified on Sep 25, 2024, 11:54 BST 11:54