Recent Performance:
• Price Movement: Gold prices reached an all-time high of $3,057.21 per ounce on Thursday, March 20, before easing to $3,029.86 per ounce on Friday, March 21. Despite this slight decline, gold has recorded approximately a 1.5% gain over the past week, marking its third consecutive weekly increase.
Technical Analysis:
• Support and Resistance Levels: The recent peak at $3,057.21 serves as a significant resistance level. A sustained move above this could indicate further bullish momentum. On the downside, the $3,000 mark is a psychological support level; a drop below this could suggest potential consolidation or a bearish phase.
• Technical Indicators: Current technical analyses present mixed signals. While some indicators suggest a continuation of the bullish trend, others point towards potential consolidation. Traders should monitor these indicators closely for short-term trading decisions.
Fundamental Factors:
• Federal Reserve Policy: The Federal Reserve's decision to maintain its benchmark interest rate within the 4.25%-4.50% range, coupled with projections of two rate cuts by the end of the year, has influenced gold's appeal as a non-yielding asset. Lower interest rates typically enhance the attractiveness of gold.
• Geopolitical Tensions: Escalating conflicts, such as the recent airstrikes in Gaza resulting in significant casualties, have heightened geopolitical uncertainties. Such events often drive investors towards safe-haven assets like gold, contributing to its price increase.