Gold Hits All-Time High of 3263, Up 9.9% in Best Run Since August 2020
In a surprising turn of events, Gold reached a new All-Time High of 3263 on Friday, marking a +9.9% gain in just one week. This impressive run is the best intra-week percentage gain since August 2020 when the COVID pandemic wreaked havoc on the global economy.
Despite already surpassing our upside goal for the year, Gold’s journey to 3263 has defied expectations. We had anticipated a pullback to lower levels before reaching this milestone, but instead, Gold has shown incredible strength, with only two down weeks in the first 15 weeks of 2025.
Looking ahead, the question on everyone’s mind is, “Where Do We Go from Here?” Given Gold’s current momentum, a move to 3400 seems like a real possibility, supported by Federal Reserve interest rate cuts and a slowing economy.
While Gold may be technically near-term overbought, it remains fundamentally undervalued in the long term. Our analysis shows that Gold’s current price of 3255 is -15% below its debasement valuation of 3830, indicating significant upside potential.
However, history has shown that after significant price spikes, Gold often reverts to the mean. It’s essential for investors to remain cautious and not get caught up in the hype, as sudden reversals could be on the horizon.
In conclusion, Gold’s recent rally to new highs is impressive, but investors should proceed with caution. While a move to 3400 is possible in the short term, the long-term outlook remains uncertain. Stay informed, stay vigilant, and always be prepared for the unexpected in the ever-changing world of finance. Gold Market Analysis: Fed’s Influence on Precious Metals and Economic Indicators
The Bureau of Economic Analysis will release the “Fed-favored” paces on 30 April, potentially impacting the Federal Open Market Committee’s decision to cut the Bank’s Funds Rate on 07 May. Despite only two positive metrics out of nine from the past week, such as March’s Treasury Budget improvement and Wholesale Inventories reduction in February, the market remains volatile.
Looking at the year-over-year perspective, the stock market can act as a hedge against inflation and deflation, affecting precious metals like Gold and Silver. The Gold/Silver ratio is currently at a high of 101.1x, indicating potential shifts in the market.
Analyzing the 10-day Market Profiles for Gold and Silver, Gold’s closing white bar is near the top of the chart, while Silver remains mid-range. The recent decline in Copper prices has influenced the overall market trends.
In the Gold Stack analysis, various key indicators such as Gold’s Value per Dollar Debasement and trading support levels are highlighted. With Gold reaching record highs, the potential for a market correction looms, especially with the uncertainty surrounding economic indicators and geopolitical events.
In conclusion, the financial markets are in a state of flux, influenced by various factors such as economic data releases and market sentiment. Understanding the trends in precious metals like Gold can provide insights into potential investment opportunities and risks. Stay informed and be prepared for market fluctuations to make informed decisions about your finances.