Gold prices have surged to new all-time highs, continuing their upward momentum into February. This marks the sixth consecutive week of gains, with a notable 2.5% increase over the past seven days, setting gold apart from the volatility seen in other markets.
Technically, gold is beginning to form a Fibonacci extension pattern. The rally, which began in October 2023, was sparked by signals from the Federal Reserve hinting at a potential easing of monetary policy and a slowdown in rate hikes. Gold experienced a 55% increase, reaching $2790 by November 2024, but profit-taking led to a pullback to $2550, retracing 76.4% of the previous rally. The market then oscillated between bullish and bearish forces for several weeks.
By December, however, gold regained momentum, and in late January, it surged above $2800. This has fueled speculation about the potential start of a new global growth phase. Should this momentum persist, analysts suggest that gold could reach $3400 per troy ounce by mid-to-late 2025.
While gold leads the charge, silver has shown a more tempered performance, still sitting 7% below its October highs. However, silver has recently demonstrated strong growth, and if gold continues its ascent, silver is expected to follow suit and recover lost ground at an accelerated pace.
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