Gold prices have surged to a new all-time high of $2482, with a significant increase of 1.9% in a single day – the largest jump since December 13. This rise comes after breaking through the previous record of $2450, indicating the end of a corrective phase and the continuation of an upward trend.
The current demand for gold has been fueled by growing expectations of a September Fed rate cut, supported by recent US inflation data and dovish comments from Fed officials. This has led to a surge in interest in the precious metal, driving its price higher.
Bulls are now eyeing the immediate target of $2500, with the potential for further acceleration. The favorable conditions in the US rate outlook, combined with geopolitical tensions and strong demand from China – the largest consumer of gold – are all contributing to the positive sentiment surrounding gold prices.
As gold enters uncharted territory above $2500, the next potential targets are projected at $2512, $2551, and $2574. However, there may be some resistance as gold approaches the $2500 mark, given that daily studies indicate the market is overbought.
In anticipation of a potential price adjustment, limited profit-taking is expected, with key support levels at $2450 and $2400. These levels are likely to provide a safety net and prevent a significant downturn in prices.
Overall, the outlook for gold prices remains bullish, with the potential for further gains in the near future. However, investors should be prepared for some volatility and potential pullbacks as the market adjusts to the new record highs.