Gold Hits Record High Amid Growing Geopolitical Unrest
Andrey Goilov | Apr 19, 2024 05:09AM ET
Gold prices have soared past 2400.00 USD, reaching a new record high on Friday. This marks the fifth consecutive week of gains for the precious metal, fuelled by increasing market demand for "safe-haven" assets amid escalating geopolitical tensions and uncertain global economic conditions.
The recent sharp increase in geopolitical tensions, particularly in the Middle East, has overshadowed optimistic remarks from Federal Reserve officials. The Fed's monetary authorities are currently inclined towards gradual interest rate cuts throughout the year, given the persistent strength of inflation and the robust state of the US economy. However, the deepening conflict, especially with Iran's involvement, has heightened concerns about the stability of the region, diminishing hopes for a quick diplomatic resolution.
Gold's role as a defensive asset has been reinforced under these circumstances, with expectations that its price could climb even higher if the Middle East conflict continues escalating. Investor interest in gold will likely to persist as long as the situation remains volatile.
The focus on gold as a safe investment has largely overshadowed other economic indicators, including fluctuations in the value of the US dollar and other currencies.
Technical analysis of XAU/USD
On the H1 chart, XAU/USD exhibits a diverging "Triangle" formation around 2379.70. A downward movement to 2342.42 could occur, followed by an upward trajectory to 2437.00. Upon reaching this peak, a decline to 2323.23 is anticipated. This corrective movement is the initial target. The Stochastic oscillator, with its signal line currently above 20, is expected to rise towards 80, suggesting potential upward movements within this framework.
By RoboForex Analytical Department
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Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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