- The price of gold shoots more than 0.5% and reaches a new historical maximum of $ 3.086.
- Markets flee to the gold refuge as long as losses in actions and cryptocurrencies increase.
- Gold operators are now pointing at $ 3,100 in the short term.
The price of gold (Xau/USD) is registering another record performance this Friday, reaching $ 3.086 as the new historical maximum for now and quoting around $ 3,075 at the time of writing. The precious metal sees another wave of flows to safe shelters, this time of investors who are coming out of positions in actions and cryptocurrencies. From here, the next great psychological objective and level to be overcome will be $ 3,100.
Later this Friday, the US personal consumption spending (PCE) data will be published for February. The general consensus is that the numbers will be quite stable, with the monthly underlying PCE that is expected to remain unchanged at 0.3%, while the general figure should also remain fixed at 0.3%.
In recent days, concerns on inflation in the United States have been increasing, since the impact of tariff implementations of the US president, Donald Trump, on inflation is difficult to measure. The risks that the US economy enters recession or stagnation are important concerns for investors and could cause movements in the markets and bond markets, and see gold extend even more.
What moves the market today: I lost track of everything, well for gold
- Inflation in France and Spain was below expectations this Friday, supporting the calls for more interest rate cuts by the European Central Bank (ECB). The general consumer price index in France grew by 0.9% year -on -year this month, challenging the predictions of analysts of an increase. In Spain, it slowed 2.2%, a much deeper slowdown than expected, and is the first country that approaches the 2%ECB target, Bloomberg reports.
- Some fair value models reveal that gold is overvalued by 13%, suggesting that additional political uncertainty regarding the execution of tariffs in the US is already contemplated. A peace agreement for Ukraine could make precious metal give up some profits as geopolitical risk perceptions are relieved, Reuters reports.
- On Thursday, US president, Donald Trump, signed a proclamation to implement a 25% tariff on car imports and promised a more severe punishment to the EU and Canada if they join to “do economic damage” to the US, while quickly approaching April 2 for the so -called implementation of reciprocal tariffs, Bloomberg reports.
Technical analysis of the price of gold: the calls of analysts remain bullish
The operators are beginning to surrender in actions and cryptocurrencies, the gold being the hottest place in the city. More and more analysts are reviewing their gold forecasts at higher levels, which means that a crucial point of being ‘overcompared’ is beginning to grow. Participating in the recovery still makes sense, but at least pay attention to specific levels will make the operation more manageable in where to enter, where to take profits or when to stop it.
On the positive side, the daily resistance R1 for Xau/USD is $ 3.072 and has already been previously tested this Friday. Above, the R2 resistance in 3.086 $ coincides with the new historical maximum. From there, the $ 3,100 mark seems distant, but I could still see that recovery at least moves in that direction.
On the negative side, the first support to consider is the daily pivot point in 3,044 $, followed by intra -dialy support S1 at $ 3,030. Below, the S2 support is at $ 3.002, which coincides approximately with the psychological level of $ 3,000.
Xau/USD: Daily graphic
FAQS GOLD
Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.
Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.
The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
