Fundamentals Boost: Gold Hits New Record High

On Tuesday, we believed that the tense situation in the Middle East attracted safe-haven funds, supporting the rise in gold prices. Maintaining a bullish trend in operations was still a more prudent choice. Therefore, we advised everyone to pay attention to the strength of the pullback and to focus on buying on dips. Support was observed at $2738, with gold potentially continuing to rise if it held above this level. Resistance was watched at $2758, followed by $2775. If $2738 was breached, further attention was given to $2724, with gold possibly continuing to oscillate.

Looking at the subsequent trend, gold broke through the short-term consolidation range of $2739 to $2745, rising to $2757, where it encountered resistance near the historical high of $2758. It then maintained a range-bound movement between $2746 and $2757 until the US market opened, after which gold broke upward, reaching a high of $2774. On Wednesday, gold continued to probe higher, setting a new historical high of $2782, and is currently trading at $2781, still showing strength. Overall, gold maintains an upward trend, testing resistance near $2758 and $2775 on Tuesday, in line with our bullish expectations.

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Gold set a new historical high on Tuesday, mainly due to the continued presence of fundamental favorable factors: firstly, expectations of a rate cut by the Federal Reserve, which, with its loose monetary policy, will reduce the opportunity cost of holding gold; secondly, concerns about the situation in the Middle East. After Israel's attack on Iran, although Iran stated it does not seek war, it also indicated it would not give up its right to respond. Regardless of negotiations, Iran will firmly respond to Israel in an appropriate manner. Additionally, conflicts between Israel and Hamas and Hezbollah continue.

On the daily chart, gold set a new historical high, showing very strong performance. Support for gold is observed at the 4-hour MA5 moving average at $2772, which is also the intraday low, followed by the historical high of $2758 before Tuesday's breakout. Resistance for gold is observed at the upper rail of the 4-hour Bollinger Bands at $2782, which is also the current intraday high. If it breaks upward and continues to set new historical highs, attention can be given to the round number of $2800, which is also near the upper rail of the daily and weekly Bollinger Bands. The 5-day moving average and MACD indicator are in a golden cross upward, and the KDJ and RSI indicators are also in a golden cross upward, showing that the bulls are in control.

Intraday gold reference: expectations of a Federal Reserve rate cut and the tense situation in the Middle East jointly support the rise in gold. Maintaining a bullish trend in operations is still a more prudent choice. It is advised to pay attention to the strength of the pullback and to focus on buying on dips. Support is observed at $2772, with gold potentially continuing to rise if it holds above this level. Resistance is observed at the breakout of $2782, and if it breaks upward, attention can be given to the round number of $2800. If $2772 is breached, further attention is given to $2758, with gold possibly experiencing high-level oscillation.