Gold futures seem to have no ceiling in sight as gold reaches $2350
It seems we have entered an era of deglobalization and geopolitical bifurcation that has significantly reinforced gold's role as reserve.
At the Comex division of the New York Mercantile Exchange, gold futures for June were trading at $2,345.35 per troy ounce.
The price of gold has set several consecutive records in recent sessions, and this past Friday marked three weeks of gains. The increase in geopolitical tension, the purchase of physical gold by central banks, and potential interest rate cuts are all contributing factors.
So far this year, gold has accumulated an appreciation of almost 10%, although advances have been particularly concentrated in this just-ended month of March, with a rise of 9%, driven by statements and actions from central banks regarding when and with what intensity interest rates will be adjusted.
In this regard, gold has broken its historical highs for several days in March as it approached and eventually surpassed the $2,200 level; a trend that now continues into the beginning of April.
Early on today, it reached a session high of $2,372.45 per troy ounce. Gold is likely to find support at $2,285.70 and resistance at $2,372.45.
The Dollar Index Futures, which tracks the dollar’s trend against the basket of the other six major currencies, increased by 0.07% to trade at $104.14.
On the other hand, in the Comex, Silver for May delivery increased by 0.51% to trade at $27.64 per troy ounce, while Copper for May delivery rose by 0.60% to trade at $4.26 per pound.
It seems we have entered an era of deglobalization and geopolitical bifurcation that has significantly reinforced gold’s role as a reserve asset. The upward movements in the price of gold in recent weeks have surprised the market after a series of central bank meetings – the vast majority have left interest rates unchanged – especially in light of the Federal Reserve’s stance
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