HomeLive CommentsGold surges to new record, but anticipates stiff resistance at 2500

Gold surges to new record, but anticipates stiff resistance at 2500

Gold’s bullish momentum appears unstoppable for now as it surged to new record high in Asian session, now eyeing 2400 mark. This surge is driven by a confluence of factors that indicate broader market apprehensions, particularly about resurgence of inflation risks, with geopolitical tension in the background.

This shift in sentiment is evident in the sharp increase in benchmark treasury yields across various regions, including US, Europe, and even Japan. Concurrently, major stock indices are showing signs of a looming correction.

Judging from these developments, Gold’s rally is more fueled by safe-haven flows, partly as hedge against selloff in stocks and bonds, and partly on geopolitical risks.

Technically, near term outlook in Gold will stay bullish as long as 2319.18 support holds. Next target is 2500 psychological level. Strong resistance is expected there to limit upside, at least on first attempt, to bring a notable correction.

Overbought condition, as seen in weekly RSI is a factor that could limit Gold’s momentum ahead. More importantly, 2500 represents a cluster medium and long term projection levels. There lies 161.8% projection of 1614.60 to 2062.95 from 1810.26 at 2535.69, and 100% projection of 1160.17 to 2074.84 at 1614.60 at 2529.27.

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