Gold prices soared to a new all-time high of $2,225 on Thursday, defying rising US Treasury yields and a stronger US Dollar. Hawkish Fed commentary and robust US economic data continue to buoy both the Dollar and precious metal prices. XAU/USD currently trades at $2,221, posting over a 1.20% gain.
Fed Governor Christopher Waller emphasizes the central bank’s commitment to tackling inflation before considering rate cuts. He seeks clear evidence of sustained downward price pressure before initiating an easing cycle. Recent US data, including stronger-than-anticipated GDP growth, a tight labor market, improving consumer sentiment, and rising Pending Home Sales, fuel market optimism.
Crucially, investors are anticipating Friday’s release of the Core Personal Consumption Expenditure (PCE) price index for February, the Fed’s preferred inflation metric.
Technical Analysis: Gold’s Uptrend Persists, RSI Signals Overbought
Gold’s bullish trajectory remains firm, with the Relative Strength Index (RSI) dipping into overbought territory as XAU/USD breaks above the March 21 high of $2,223. Oversold conditions (RSI above 70 or even 80) often accompany strong uptrends. Sustained buying pressure above $2,200 could pave the way for a challenge to the $2,300 level.
Conversely, a dip below $2,200 could trigger a pullback towards the December 4 high-turned-support at $2,146. A deeper correction could target $2,100, followed by the December 28 high at $2,088 as the next support level.
