- Spot gold hits a record $2,150.00, perched comfortably above the 20-day moving average at $2041.00.
- ANZ Bank economists attribute the rally to the Fed’s shift, foreseeing a push to $2,200 by year-end.
Gold prices have been on the rise for the last six sessions, gradually approaching the December high of $2149.00. This recent uptick followed Federal Reserve Chair Jerome Powell’s reaffirmation that he thinks it would be sensible to consider reducing the Fed funds rate at some point this year, with the condition that there is increased confidence in inflation steadily reaching the 2% target.
Looking at the daily chart, gold currently sits comfortably above its main support, the 20-day moving average at $2041.00, making it susceptible to a potential reversal. Also, Gold might be prone to downward pressure once the Euphoria from Jerome Powell’s recent testimony fades, and the market realizes that the Fed is not actually in any hurry to lower interest rates.
Now, Spot gold is priced at $2,150.00 per troy ounce, hitting a new record high. Extremely overbought conditions have become more obvious.
Economists at ANZ Bank suggest that the primary driver behind the surge in gold prices is the Fed’s shift from a tightening to an easing monetary cycle. They also anticipate that elevated geopolitical risks and central bank buying will contribute to pushing the gold price to $2,200 by the end of the year.
Interestingly, palladium has crossed the $1,000-an-ounce mark, recording gains of over 10%.
