Gold (XAUUSD) reached a new all-time high Wednesday, extending its rally that has seen a 20% surge in the first quarter. The metal remains in demand amid uncertainties surrounding US President Trump’s tariff policy, with concerns about inflation and economic growth.
Strategists from Bank of America predict continued demand for gold, driven by central bank purchases, strong retail interest, and a new rule allowing China’s insurance industry to invest in gold.
Technical analysis suggests potential consolidation in the short term. A shooting star candlestick pattern formed on Tuesday, which could indicate a bearish reversal. While the Relative Strength Index (RSI) confirms bullish momentum, it also suggests overbought conditions, raising the chance of short-term profit-taking.
Key Support Levels
$3,048: First potential support if the price begins to pull back.
$2,953: A crucial level, supported by the 50-day moving average, which may attract buying interest.
$2,858: A deeper pullback could lead to this support level, where investors may look to buy.
Based on bars pattern analysis, the gold price could consolidate before resuming its uptrend, possibly reaching $3,395 by late May.
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