Gold posted a one-year high this week, enabled by market expectations that US rates have peaked while persistent fears over US banking turmoil have bid up safe haven assets.
From a technical perspective, there could be more immediate upside for the precious metal.
Spot gold has yet to officially enter “overbought” conditions, with its 14-day relative strength index yet to reach the 70 threshold while its upper Bollinger band has yet been breached.
Furthermore, gold futures have already printed a fresh record high this week!
Today’s US jobs report, as well as next week’s US CPI print, could go a long way in determining whether gold will register an all-time peak over the immediate term.
Fresh evidence of waning US hiring momentum and inflationary pressures should serve as the fundamental sparks for gold’s new record high.
Gold bugs may be further encouraged to test resistance at the 50-day SMA around $1990 if US hiring momentum is truly waning.
2 June 12:53
Spot gold is attempting to stage a slight recovery ahead of the weekend, after being dealt a further blow by Thursday’s upward revisions to US GDP.
26 May 13:51
Gold has been dragged below the psychologically-important $2,000 level this week due to optimism surrounding a US debt deal, while markets also ramped up bets of a Fed rate hike in June.
19 May 13:17
The longer that spot gold can keep its head above $2k amid sustained inflows into bullion-backed ETFs, the greater the chances of the precious metal revisiting its all-time high.
12 May 12:19
There's a better website for you
A new exciting website with services that better suit your location has recently launched!
Sign up here to collect your 30% Welcome Bonus.