Gold Price Surpasses $3,000 per Ounce for the First Time in History
Just five days ago, we noted that gold was approaching the $3,000 level and suggested that a breakout could occur this month.
Yesterday, as shown on the XAU/USD chart, the spot price of gold rose above the psychological $3,000 mark for the first time ever. The new all-time high now stands at around $3,045.
Why Is Gold Rising?
Bullish sentiment is being driven by traders positioning themselves ahead of a key eventthe Federal Reserves interest rate decision, set to be announced today. According to ForexFactory, analysts expect rates to remain unchanged at 4.5%, but surprises cannot be ruled out.
Additionally, gold is becoming more attractive as a safe-haven asset. As reported by Reuters:
Tensions in the Middle East are escalatingIsrael warns of further casualties, as airstrikes in Gaza have already resulted in over 400 deaths.
Gold is gaining amid uncertainty over US tariffs.
Technical Analysis of XAU/USD Chart
In the short term, golds price action has formed movements that outline an ascending channel (marked in blue), with key developments including:
A breakout (as shown by the arrow) above not only the psychological $3,000 level but also the upper boundary of the channel.
A prior consolidation zone formed between $3,000 and $2,980.
It seems the bulls were looking for confirmation and confidence before attempting to break through resistance. The fact that they succeeded suggests this resistance zone may now act as support, making a retest of $3,000 possible.
However, the future direction of gold prices will largely depend on the news backdrop. Brace for volatilitythe Fed's interest rate decision will be released today at 21:00 GMT+3, followed by a press conference by Chair Jerome Powell at 21:30 GMT+3.
Read more: https://fxopen.com/blog/en/oa-gold-price-surpasses-3-000-per-ounce-for-the-first-time-in-history/
Text source: Forex Trading Blog
