Gold hit new record high following 1.8% acceleration in early Monday, which broke above psychological $4400 barrier and pushed the price further into uncharted territory.
Increased safe haven demand on fragile geopolitical and economic situation contributed to the latest rally, driven mainly by growing expectations more dovish Fed’s stance in 2026.
Although the central bank expressed cautious and data-dependent approach to the monetary policy, markets expect at least two rate cuts in 2026, with weakening conditions of the US labor market and the fact that Jerome Powell will step down in May and new Fed Chair person is expected to be more compliant with President Trump’s ideas of more lose monetary policy.
The yellow metal peaked at $4420 this morning, with subsequent easing seen as expected reaction on overbought conditions on daily chart.
Broken $4400 barrier and former top at $4381, reverted to solid supports which should ideally contain shallow correction and keep fresh bulls intact for fresh push higher.
Daily close above $4400 to confirm fresh bullish signal and keep focus at the upside, with targets at $4430, 4448 and $4460, guarding psychological $4500 level.
Res: 4420; 4430; 4448; 4460
Sup: 4400; 4381; 4375; 4350
