Gold Prices Print Yet Another ATH. How High Can They Go?

Gold prices hit new all-time highs on Monday, driven by growing confidence around a June interest rate cut by the Federal Reserve. The commodity rose to an intra-day high of $2265 per ounce, while Gold futures hit $2286 as of 13.00 pm UTC. Gold prices found new upside momentum over the past four trading sessions, with consecutive daily wins against the US dollar.

Federal Reserve Chairman Jerome Powell stated on Friday that the US economy is strong and there’s no hurry to cut interest rates. Furthermore, he added that inflation figures are within the Fed’s trajectory. This has increased the perception that the first of three expected interest rate cuts in 2024 is likely to come in June.

Meanwhile, Personal Consumption Expenditure (PCE) index readings for February were underwhelming, and this added to the downward pressure on US dollar. The Core PCE Price Index (excluding food and energy) came in at 0.3% month-over-month and 2.8% year-over-year, meeting the forecast estimate on each occasion. These figures failed to provide upside momentum to the strength of the dollar much as it provided support.

Elsewhere, yields on US Treasury bonds have declined marginally over the past five trading sessions, easing pressure on gold prices. With benchmark 10-year and 5-year bonds have marginally over the past week, investors are motivated to look for more profitable opportunities from gold, as safe haven inflows grow. Gold’s resolve to climb will be tested more sternly later in the week when US Non-farm payrolls data comes out.

Technical analysis

Spot gold price has its pivot at 2231, and the buyers will need to maintain action above this mark to be in control. That could see them meet resistance at 2265. However, an extension of control by the buyers at that level could break the resistance and could propel movement to test 2276. However, a break below 2231 will signal control by the sellers, with support at 2222. Furthermore, a continuation of control by the sellers at that point could see XAUUSD test 2212.