Gold price pulls back after rising to fresh all-time high, bullish potential remains intact
The post Gold price pulls back after rising to fresh all-time high, bullish potential remains intact appeared on BitcoinEthereumNews.com.
Gold price gains strong positive traction on Monday and spikes to a fresh all-time peak. The cautious market mood, along with dovish Fed expectations, benefits the XAU/USD. Overstretched conditions on the daily chart prompt some profit-taking at higher levels. Gold price (XAU/USD) builds on its recent strong rally witnessed over the past three weeks or so and surges to a fresh record high, around the $2,144-2,145 region during the Asian session on Monday. The precious metal, however, surrendered a major part of its intraday gains and currently trades below the $2,100 mark, still up around 0.70% for the day. Bulls opt to take some profits off the table amid extremely overbought conditions on the daily chart and a modest US Dollar (USD) uptick. The downside remains cushioned in the wake of growing acceptance that the Federal Reserve (Fed) will start cutting interest rates by as soon as March 2024, which continues to benefit the non-yielding yellow metal. Apart from this, the geopolitical uncertainty and fears of another COVID-19-like respiratory illness outbreak in China, which is seen weighing on investors’ sentiment, might further limit any meaningful pullback for the safe-haven Gold price. An attack on an American warship and commercial vessels operating in the Red Sea fueled concerns over a further escalation in the Israel-Hamas war. Meanwhile, a surge in respiratory illnesses and clusters of pneumonia in children in China attracted the spotlight when the World Health Organization sought information last week. This contributes to cap the recent upswing in the global equity markets and could undermine the safe-haven XAU/USD. Daily Digest Market Movers: Gold price hits fresh record higher amid the global flight to safety and Fed rate cut bets The global risk-on rally hit a roadblock after an attack on an American warship and commercial vessels in the Red…
Filed under: News - @ December 4, 2023 4:24 am