First Gold Close Above $2,400, Buyers Target New Record High

Gold formed a bullish daily candlestick on Friday, closing the week at $2,414.26, which is the first close ever above $2,400.

Skerdian Meta•Sunday, May 19, 2024•1 min read

Gold formed a bullish daily candlestick on Friday, closing the week at $2,414.26, which is the first close ever above $2,400. There was no clear catalyst for the surge in Gold and the dump in the USD on Friday, with FOMC members continuing to push rate cuts further back, but the break is valid nonetheless, so now Gold buyers are eying the all time high from early April at $2.433 and then $2,500.gold

Gold now aiming for $2,500

Gold retreated lower in the second half of April after making a record high back then. XAU/USD fell below $2,300, but moving averages held the decline. The 100 SM (red) first turned into support, then after the uptrend resumed again, the 20 SMA (gray) turned into support for Gold.

Gold Chart H4 – The 20 SMA Has Turned Into Resistance

The recent decline in the US dollar over the past two weeks has significantly contributed to the rise in gold prices, as gold is typically viewed as a hedge against USD devaluation. This upward movement in gold prices has been further fueled by recent economic data indicating a slowdown in US inflation.

The combination of a declining US dollar and lower-than-expected inflation data has significantly boosted gold prices, pushing XAU/USD above $2,400 for the first time. This historic close underscores gold’s enduring appeal as a safe-haven asset in times of economic uncertainty and highlights the current market dynamics favoring precious metals.

Gold’s recent bullish dynamics, including its rise to $2,397 earlier this week and the break over $2,400 pretty soon after that, illustrate the uncertainty in the financial markets, which have helped safe havens. Despite headwinds from a stronger dollar and rising interest rates, China’s economic stimulus and heightened demand for safe-haven assets have propelled gold prices. The simultaneous strong performance of silver further underscores a bullish outlook for the precious metals market.

Gold Live Chart

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.