Gold prices have skyrocketed to over $2,750 per ounce, marking a 33% increase year-to-date and positioning the precious metal for its best year since 1979. This incredible rally comes despite a strong dollar, driven by safe-haven demand amidst global uncertainties.
The surge in gold prices follows a weekend drop, with the yellow metal opening around $2,732 before climbing closer to all-time highs. The recent comments from Iranian authorities asserting their right to respond to Israeli actions over the weekend have reignited the safe-haven appeal for gold, attracting investors back to the precious metal.
Furthermore, gold ETF flows have reached a record high of $3 billion in new investments, making it the second-largest increase ever. This influx of funds has helped gold maintain its impressive gains for the year, highlighting its resilience in the face of market fluctuations.
Despite a barrage of US economic data scheduled for the week, the gold rally remains strong, with safe-haven demand outweighing any potential impact from a strong US Dollar. Global uncertainties continue to support the upward trajectory of gold prices.
Technical Analysis Gold (XAU/USD)
From a technical perspective, gold requires a daily candle close above the $2,750 handle to propel it towards the $2,800 mark and potentially set new all-time highs. Immediate resistance levels are seen at $2,758, followed by $2,775 and $2,800, while support levels lie at $2,738, $2,724, and a possible retest of $2,700.
GOLD (XAU/USD) Daily Chart, October 29, 2024
On the H4 chart, gold has surpassed the $2,750 handle twice but struggled to maintain momentum. A daily close above this level could provide the necessary boost for bulls to drive prices higher. The path towards $2,800 remains in focus, with key resistance levels at $2,758 and $2,775.
GOLD (XAU/USD) Four-Hour (H4) Chart, October 29, 2024
Support:
$2,738, $2,724, $2,700
Resistance:
$2,758, $2,775, $2,800
Overall, the record-breaking surge in gold prices and substantial ETF inflows signal a strong year for the precious metal, defying market trends and showcasing its safe-haven appeal amidst global uncertainties. Investors should monitor key technical levels to capitalize on potential opportunities in the gold market.