Gold Price Near Record High Following Economic Uncertainty

Fundamental Analysis

* Golden Resistance: The price of the yellow metal continues to exhibit strength as the market continues to seek safe haven amidst mounting economic worries and the potential for interest rate cut. One major driver behind gold’s rapid rise is the ongoing accumulation of physical gold by central banks globally. As these entities increase their reserves, the resulting surge in demand directly influences pricing, propelling the precious metal to unparalleled heights. On the other hand, the CME’s FedWatch probability indicator indicates a 62% chance that the Federal Reserve will lower interest rates in June, further fueling optimism. Decreased interest rates commonly lead to a depreciation of the U.S. dollar, rendering gold more accessible to investors using alternative currencies.

Technical Analysis

* Technical Breakout: Gold price was traded higher following prior breakout above the previous resistance level 2200.00. MACD which illustrate strong bullish momentum signal with bullish market structure breakout suggest the commodity to further extend its gains towards the next level.

* Resistance And Targets: If the bearish momentum persists, there’s a strong likelihood that the price will rose towards the subsequent level 2250.00 and potentially breach above it. Conversely, if the price fails to break the level 2250.00, it may indicate a short-term technical correction and rebound towards the level 2200.00.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Moving forward, investors will keenly anticipate Friday’s release of the PCE inflation index, a crucial gauge of the Federal Reserve’s monetary policy direction. With markets shut for Good Friday and resuming on Monday, any unexpected findings in the inflation figures might result in increased market turbulence during the following week.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on U.S data, global economic updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.