Gold prices have gained momentum after hitting a record high on Monday. Renewed hopes for Federal Reserve rate cuts and escalating Middle East tensions have boosted safe-haven assets like gold.
Federal Reserve officials Bostic, Barr, Waller, Jefferson, and Mester are scheduled to speak on Monday. Their speeches are expected to provide insights into the future path of monetary policy, which could influence the gold market.
Gold Price Movement: The gold price (XAU/USD) gained momentum on Monday, hitting a record high near $2,450 during the European session.
Contributing Factors: Renewed hopes for interest rate cuts from the US Federal Reserve and rising geopolitical tensions in the Middle East have driven the increase in gold prices.
Additional Geopolitical Tensions: Heightened tensions between Russia and Ukraine, with both nations launching attacks against each other over the weekend, have also bolstered safe-haven demand.
Federal Reserve Speeches:
Gold traders will be closely watching the speeches of Federal Reserve officials Bostic, Barr, Waller, Jefferson, and Mester later on Monday. Their comments could offer clues about future monetary policy. A cautious approach or hawkish comments from these officials could limit the precious metal’s upside.
Current Trend: Gold is trading with a positive bias, breaking above an ascending trend channel that has formed since May 2.
Technical Indicators: On the four-hour chart, gold maintains a bullish outlook, staying above the 100-period Exponential Moving Average (EMA). The Relative Strength Index (RSI) holds above the midline around 82.50.
Overbought Condition: The overbought RSI condition suggests that further consolidation may occur before any near-term upside in gold prices.
Immediate Resistance: The all-time high of $2,440 acts as an immediate resistance level for XAU/USD.
Potential Upside: A decisive break above this level could lead to a rally towards the $2,500 psychological level.
In summary, the gold price is trading positively, supported by hopes for Federal Reserve rate cuts and geopolitical tensions. The speeches from Federal Reserve officials later in the day could provide further direction for the gold market. Technically, gold remains bullish, but the overbought RSI condition indicates potential for consolidation before further gains.
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