Gold prices have surged to an all-time high of over 2400.00 USD, marking the fifth consecutive week of gains for the precious metal. This remarkable rally is driven by the increasing demand for safe-haven assets in light of escalating geopolitical tensions and uncertain global economic conditions.
Despite optimistic statements from Federal Reserve officials regarding gradual interest rate cuts, the deepening conflict in the Middle East, particularly with Iran’s involvement, has raised concerns about regional stability. This has led investors to flock to gold as a defensive asset, with expectations of even higher prices if the conflict persists.
While the focus remains on gold as a safe investment, other economic indicators such as fluctuations in the US dollar and other currencies have been overshadowed. Technical analysis of XAU/USD shows a consolidation range on the H4 chart, with a potential upward target of 2437.00, followed by a correction to 2323.23. The MACD indicator supports this scenario, signaling a potential decline.
On the H1 chart, XAU/USD displays a “Triangle” formation, with a possible downward movement to 2342.42, then an upward trajectory to 2437.00. A decline to 2323.23 is expected after reaching this peak. The Stochastic oscillator indicates potential upward movements within this framework, with the signal line currently above 20.
In conclusion, the surge in gold prices is a reflection of the current geopolitical tensions and economic uncertainties. Investors are turning to gold as a safe-haven asset, with expectations of further price increases. It is important to monitor the situation in the Middle East and other global factors to make informed investment decisions.