Gold: Gold price nears record high, around $2,300 amidst geopolitical risks
Gold prices are moved to Record high of $2300 after the FED Powell dovish speech on Wednesday. Rate cuts in this year are based on evaluation of incoming data. Israel attacked Iran Embassy in Syria, Five military advisers and 2 Army Generals were killed. It created third party Iran fears entered into this conflict between Israel and Gaza. This fears of uncertainity moved Gold prices higher in the market.
XAUUSD is moving in Ascending trend line and market has rebounded from the higher low area of the pattern
In light of geopolitical tensions from the Russia-Ukraine conflict and Middle East turmoil, along with a significant earthquake in Taiwan, the demand for gold as a safe-haven asset is expected to persist. Additionally, the recent decline in the US Dollar amidst uncertainty regarding the Federal Reserve’s interest rate plans supports a positive outlook for gold in the short term.
However, despite these factors, a positive sentiment in equity markets and overextended conditions in daily charts may deter bullish activity in the gold market. Investors may opt to await further clarity on the Fed’s rate-cut strategy before committing to new positions. Focus will likely center on the upcoming release of the US Nonfarm Payrolls report on Friday, with attention also on speeches by influential Federal Open Market Committee (FOMC) members for potential trading opportunities.
Mixed signals regarding interest rates from Federal Reserve officials have pushed the US Dollar to a one-week low, contributing to the rise in the price of gold. Notably, influential members of the Federal Open Market Committee (FOMC), including Fed Chair Jerome Powell, have reiterated the central bank’s intention to cut rates in 2024, although they have provided limited guidance on the timing of such actions. Powell emphasized the importance of thoroughly assessing the current state of inflation and stressed the need for further discussion and data before any decision on rate cuts. Moreover, the retreat of the yield on the benchmark 10-year US government bond from a four-month high on Wednesday has provided additional support for gold, which does not yield interest like bonds.
Gold: Gold prices rise for fourth consecutive session, silver reaches two-year high
Gold prices are moved to Record high of $2300 after the FED Powell dovish speech on Wednesday. Rate cuts in this year are based on evaluation of incoming data. Israel attacked Iran Embassy in Syria, Five military advisers and 2 Army Generals were killed. It created third party Iran fears entered into this conflict between Israel and Gaza. This fears of uncertainity moved Gold prices higher in the market.
XAUUSD is moving in Ascending channel and market has reached higher high area of the channel
Gold prices hit new peak, marking fourth straight session of record highs, driven by escalating Middle East tensions, anticipation of U.S. interest rate cuts, and persistent inflation concerns. Recent data indicating a slowdown in U.S. services industry growth and input prices, along with comments from Federal Reserve policymakers, add to the bullish sentiment.
Investors await insights from Fed Chair Jerome Powell. In India, gold prices surged to a record high of ₹69,200 per 10 grams, driven by global rates and geopolitical tensions.
Gold: Gold hits record highs above $2,300 amidst mixed rate cut signals
Gold prices are moved to Record high of $2300 after the FED Powell dovish speech on Wednesday. Rate cuts in this year are based on evaluation of incoming data. Israel attacked Iran Embassy in Syria, Five military advisers and 2 Army Generals were killed. It created third party Iran fears entered into this conflict between Israel and Gaza. This fears of uncertainity moved Gold prices higher in the market.
XAUUSD has broken box pattern in upside
In early Asian trading on Thursday, gold prices surged to record highs, buoyed by a weakening dollar and uncertainty surrounding potential U.S. interest rate cuts. The ongoing geopolitical tensions in the Middle East and between Russia and Ukraine, compounded by a destructive earthquake in Taiwan, fueled safe-haven demand for gold and other precious metals.
The dollar’s sharp decline, following comments from Federal Reserve officials indicating a likelihood of interest rate cuts in 2024 without clear signals on timing, further propelled gold prices upward.
The weakening dollar, driven by mixed signals on interest rates from the Fed, supported bullion prices, with the dollar index dropping nearly 1% after reaching a 4-½ month high earlier in the week. Fed Chair Jerome Powell’s remarks emphasized the eventual rate cuts in 2024 but provided limited clarity on timing, fueling uncertainty and boosting gold demand, leading to its third consecutive session of record highs.
XAUUSD has broken Ascending Triangle in upside
Looking ahead, market participants are keenly awaiting further insights from Fed members Michelle Bowman and Thomas Barkin, scheduled to speak later on Thursday, following recent warnings about persistent inflation potentially delaying early rate cuts. Additionally, the release of nonfarm payrolls data for March on Friday will be closely monitored, as labor market strength and inflation trends are crucial factors for the Fed’s interest rate decisions.
The trajectory of U.S. interest rates will likely dictate gold’s future movements, given its historical inverse correlation with the dollar and Treasury yields over the past couple of years.
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