“Gold Hits New Record: Support Point and Predictions Amid Economic Uncertainty”

Investing.com – It’s been nearly three years, but the gold trade seems to have been well worth the wait.

Amid signs that it is ready to de-escalate the situation regarding interest rate increases to combat inflation, gold has moved in one fell swoop to the other side of the arc that markets have been waiting for since the record highs in August 2020.

The New York Comix price reached an all-time high of $2,082.80 an ounce before settling at $2,055.70, up $18.70 or 0.9%.

which reflects physical trades in bullion and which some traders follow more closely than futures, reached $2,080.72 before consolidating to $2,046.65 by 14:00 ET (18:00 GMT), $7.89, or 0.4%. Per day.

Earlier, the record high in both the COMEX gold and bullion spot traded at around $2,075.

Aside from the Fed’s wobbly stance on whether another rate hike was needed in June — the central bank has implemented 10 rate hikes since the pandemic, adding 5% to key lending rates that some say is choking credit — it was Gold rose on Thursday, supported by broader concerns about the US economy.

“The force is very strong for the gold bulls given all the banking turmoil and the growing risk that the US will experience a severe recession,” said Ed Moya, analyst at online trading platform OANDA.

“The real economy is going to crash a lot given what we’re seeing in financial conditions and that will drive up demand for safe havens. Gold will shine against that macro backdrop and probably look to move above $2100 if the risk-off sentiment on Wall Street continues over the next few sessions .

Since mid-March, gold prices have surged in and out of the $2,000 region, explained Sunil Kumar Dixit, chief technical strategist at SKCharting.com. To solidify itself in this niche, it should not exceed 101.47 while US yields, led by , should remain below 3.47% on a daily closing basis.

Dixit said gold itself could drop to $2,098 initially, then head towards $2,148 as US debt default risks, a growing bank credit crunch, and bets on the Fed halting interest rate hikes in June arrive.

He said, “The short-term correction towards support areas from $2020-$2010 could also turn into a buying opportunity on dips for those who lost in the longer term to $2080.” This and “the bullish momentum remains intact as long as the daily close remains above $2,000 – making gold the new normal if support persists.”