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Gold at Record Highs Breaks Records

Gold has reached record highs, surpassing $2,570 per ounce, driven by the expectation of interest rate cuts by the U.S. Federal Reserve and the recent tightening by the European Central Bank, which reduced rates by 25 basis points. This expansive monetary policy environment has favored gold, seen as a safe haven asset in times of economic uncertainty. In addition, silver and copper have registered increases, reinforcing a positive outlook for precious metals.

Goldman Sachs projects a gold price of $2,700 per ounce by 2025, anticipating that a looser policy cycle will benefit the metal in the long term. However, risks linked to economic slowdown and geopolitical instability persist, strengthening the perception of gold as a hedge against currency depreciation and inflation.

In the technical analysis, there is significant bullish strength that has broken the sideways movement that began in August, reaching new highs. The RSI index stands at 67.28%, indicating a slight overbought level that hints at a possible extension of the price to higher highs. With the checkpoint in the $2,325 area, it is possible that after reaching $2,600, the price will experience a pullback towards the last consolidated price structure of $2,500, being this the area where the current price is supported.

Ion Jauregui - Analyst ActivTrades (13/09/2024)

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