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MENAFN- Daily Forex)
Amidst a strong bullish momentum, spot Gold prices have surged to all-time highs, reaching a resistance level of $2,830 per ounce. This is the highest in the history of the gold market, before settling around $2,817 per ounce at the time of writing this analysis. The gains in the standard gold price index came amid strong demand from investors to buy gold bullion as a safe haven, following the US administration's official imposition of tariffs on global economies.
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According to gold trading platforms, prices rose by 1.2% yesterday as investors continue to deposit their funds in safe havens such as gold and the Japanese yen amid concerns about the impact of Trump's measures on the global economy and monetary policy, while global stocks and cryptocurrencies declined.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Will gold prices continue to rise in the coming days?
According to gold trading platform performance, gold prices have risen amid a wave of more flexible monetary policy from major global central banks while the market has been assessing the impact that unclear US trade policy could have on the global economy. Recently, the new US administration-imposed tariffs of 10% on China and 25% tariffs on Canada, but it postponed plans for restrictions on Mexico to raise hopes of reducing protectionism by the world's largest economy. However, it supports demand for safety due to the inability to predict the situation.
Meanwhile, markets expect the Federal Reserve to deliver two interest rate cuts this year. In turn, the Bank of Canada cut its key interest rate and announced the end of quantitative tightening, as well as a baseline scenario for purchasing government debt in the near future.
As for major gold buyers, the central banks of major gold consumers in the People's Bank of China and the Reserve Bank of India also indicated a more flexible monetary policy and higher liquidity in the near future.
Obviously, All of these factors combined will support further gains for gold prices in the coming days Tips:
As we expected, gold prices are likely to rise further to record levels. Also, it may remain so as long as global tensions are increasing stocks are under pressure from Trump's policies
During yesterday's session and through stock trading platforms, US stock indices performed mixed at the beginning of trading after the US administration's approval of tariffs on goods from major global economies, primarily Canada and Mexico, and China. And Trump's threat to expand the scope of his wars to address the US trade deficit.
According to trading, US stock market indices were on track for a much worse loss, as the Dow Jones index fell by 665 points shortly after trading began, amid concerns about the amount of pain that US companies would feel due to tariffs. Some of the heaviest losses had hit big tech companies and other companies that could be more hurt by the higher interest rates that could eventually result from the US tariffs announced on imports from Canada, Mexico, and China.
Furthermore, US stocks pared losses after Mexican President Claudia Sheinbaum said tariffs on her country's goods were suspended for a month after a conversation with Trump Price Technical Analysis and Expectations Today:
According to the performance on the daily chart, the general trend of gold prices is still bullish. Although technical indicators are moving towards strong overbought levels, the continuation of the recent gold gains factors may support the move towards stronger peaks, paving the way for the next historical peak of $3,000 per ounce. Currently, the closest resistance levels to the recent performance are $2,835, $2,860 and $2,885 per ounce, respectively. But dear reader, keep in mind that if the recent gold gains factors calm down, the market may be exposed to strong profit-taking sales at any time.
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