- Gold prices surge past $2750 per ounce on record inflows into gold funds. Gold ETFs saw a massive $3 billion investment last week, the second-largest increase ever.
- Year-to-date gains for gold are at 33%, setting the stage for its best year since 1979.
- Despite a strong US dollar, gold’s rally remains unfazed, with safe-haven appeal outweighing dollar strength amid rising global uncertainties. This trend looks set to continue.
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Gold prices have surpassed $2750 once again after a weekend dip, opening around 2732 and climbing towards all-time highs. The surge in prices has been attributed to the return of safe-haven appeal, following recent geopolitical tensions and strong inflows into gold funds.
Investors have poured about $3 billion into gold funds last week, marking the second-largest increase on record. This influx of funds has bolstered gold’s year-to-date gains to an impressive 33%, positioning the precious metal for its best year since 1979.
Despite the strength of the US dollar, gold has remained resilient, with safe-haven demand overshadowing the currency’s performance amidst global economic uncertainties. This trend is expected to persist as market dynamics continue to evolve.
Technical Analysis Gold (XAU/USD)
From a technical perspective, Gold needs a daily candle close above $2750 to embolden bulls and push towards the $2800 level for fresh all-time highs. The recent price movements suggest that psychological levels are key drivers in the current gold market sentiment.
Looking at the H4 chart, gold has faced resistance near $2750 but has the potential to break higher with immediate targets at $2758, $2775, and $2800. On the downside, support levels stand at $2738, $2724, and a possible retest of $2700 if the price retreats.
Support
2738, 2724, 2700
Resistance
2758, 2775, 2800
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Additional Insight:
– The surge in gold prices can also be attributed to rising inflation expectations and the ongoing stimulus measures by central banks worldwide, which have increased the appeal of gold as a hedge against currency devaluation.
– Geopolitical tensions, such as conflicts in the Middle East and trade disputes between major economies, have added to the uncertainties that are driving investors towards safe-haven assets like gold.
– The technical analysis highlights the importance of key levels like $2750 and $2800 in determining the future price movements of gold, demonstrating the significance of these levels for traders and investors in the current market environment.
