Gold Price Hits New Record
As shown by the XAU/USD chart:
Gold has reached a new all-time high;
This morning, gold is trading around $2,567 per ounce.
Bullish sentiment is being driven by expectations of a Federal Reserve rate cut next week. According to MoneyControl, the International Monetary Fund stated on Thursday that it would be "appropriate" for the Fed to start its long-awaited monetary easing cycle at its meeting next week, as inflation risks have eased.
On 6 September, we analysed the gold price chart and identified:
an ascending channel (shown in blue);
two resistance lines forming a bullish flag pattern.
Golds surge to a new all-time high has broken through the bullish flag, suggesting a potential resumption of the rally. How successful could this be?
Technical analysis of the XAU/USD chart today shows that the price is approaching resistance levels formed by:
the upper boundary of the blue channel;
Resistance line 3, which can be viewed as the target following the breakout of resistances 1 and 2, according to technical analysis principles.
Therefore, gold has limited potential for further growth due to the proximity of these resistance levels. It's worth noting that the RSI is in the overbought zone, which could encourage bulls to take profits at this historic peak.
Given these factors, the market may be vulnerable to a correction. However, the key influence will be the actual decision from the Fed, which will be announced next Wednesday.
Read more: https://fxopen.com/blog/en/oa-gold-price-hits-new-record/
Text source: Forex Trading Blog
