GOLD Analysis
Afternoon: Gold Surges to Record Highs Amid Global Monetary Easing & Trade Uncertainty
Highlights:
- Gold surged to a fresh record high of $2,820, driven by looser monetary policy from major central banks.
- US trade policies and global economic uncertainty have increased demand for gold as a safe-haven asset.
- Technical analysis suggests strong bullish momentum, with support at $2,790 and resistance at $2,840.
Overview:
Gold prices soared to an all-time high of $2,820 per ounce as investors reacted to global monetary easing and uncertainty surrounding US trade policies.
- Trade Policy Uncertainty: The US imposed 10% tariffs on China and 25% on Canada, while postponing tariffs on Mexico, signaling a cautious approach to protectionism. This uncertainty drives safe-haven demand for gold.
- Central Bank Easing:
- Fed Rate Cut Expectations: Investors anticipate two rate cuts from the US Federal Reserve this year.
- Dovish Policies from Global Central Banks:
- Bank of Canada (BoC) cut interest rates and announced an end to quantitative tightening, signaling further economic support.
- European Central Bank (ECB) and Swedish Riksbank lowered rates, boosting liquidity.
- People’s Bank of China (PBoC) and Reserve Bank of India (RBI) signaled looser monetary policy, increasing liquidity in key gold-consuming nations.
Technical Analysis & Price Levels
- Gold Spot Prices:
- Support: $2,790 – Key level for potential rebounds.
- Resistance: $2,840 – A breakout above could drive prices higher.
- Action: Buy on dips around $2,810, targeting $2,838, with a stop loss below $2,790.
- Gold MCX Prices:
- Support: ₹82,700
- Resistance: ₹83,700
Conclusion
- Gold remains strongly bullish, supported by monetary easing and economic uncertainty.
- A break above $2,840 could trigger further gains, while pullbacks towards $2,790 may offer buying opportunities.
- Key focus remains on upcoming economic data and Fed rate decisions, which will shape gold's future trend.
Support and Resistance Levels:
