Gold Price Targeting Record High As Buyers Keep Coming

The Gold price surged above $2,100 in December in a spike higher, but reversed lower pretty quickly. Now XAU is back up at the highs

Written by: Skerdian Meta • Monday, March 4, 2024 • 2 min read

• Last updated: Monday, March 4, 2024

The Gold price surged above $2,100 in December in a spike higher, but reversed lower pretty quickly. Now XAU is back up at the highs and it seems like this time the bullish momentum is more stable, as all dips have found buyers in no time. Particularly in the last two weeks, the buying momentum has picked up, as the FED and other central banks prepare to start the rate cut process.

Gold Daily Chart – The Surge Has Gained Pace

Gold exhibited a significant breakout above the trendline resistance and surged toward the $2070-80 resistance level following the weaker-than-expected economic data from the US last Friday. At this critical resistance level, sellers were anticipated to step in, seeking to establish short positions with defined risk above the resistance level, betting on a potential drop back towards the broken trendline. But they didn’t appear at all, and XAU broke above $2,100 without much of a problem. Conversely, buyers will be looking for a decisive break above the 2080 resistance to bolster bullish momentum, potentially leading to further gains and a challenge of the all-time high.

The soft data from the US last week, such as the ISM Manufacturing triggered an extraordinary surge in Gold prices. Typically, strong US economic data may weigh on gold in the near term as it causes the market to anticipate fewer rate cuts, leading to higher real yields and a stronger US dollar. But that would be a good opportunity to start buying gold, especially closer to $2,030-50 which will likely turn into support now. But the soft figures from the US led to a far larger reaction and drove gold to new highs. This reaction suggests that market participants view the weak data as consistent with overall economic fundamentals, supporting the case for further gains in gold prices.

Gold Live Chart XAU

GOLD

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.