Expert Analysis: Gold Price Hits Record High of $2572 per Troy Ounce After Three Weeks of Consolidation
The gold price has surged nearly 3% this week and 25% since the beginning of the year, outperforming major stock market indices and defying the decline in base metals. Technical analysis points to a rising bullish wedge pattern, with the potential for a further rise to the $2660 area, signaling a longer-term upside to $2640.
Investors should be prepared for a possible quick rise into this area, which could happen during an active US trading session on Friday or Monday. The recent decline in bond interest rates has renewed interest in gold among retail investors, but the upcoming could potentially reverse the trend.
Historical data suggests that gold prices may experience profit-taking following the announcement of Fed policy decisions. In 2015, a similar situation occurred where gold fell in anticipation of a Fed rate hike, only to bottom out on the day of the hike. If the Fed does not soften policy as expected, investors may see a shift in gold prices.
Overall, the current market conditions indicate a bullish trend for gold, with the potential for further gains in the coming weeks. Investors should closely monitor Fed policy decisions and bond interest rates to gauge the future direction of gold prices.
The FxPro Analyst Team