- Gold prices surge past $2750 per ounce on record inflows into gold funds. Gold ETFs saw a massive $3 billion investment last week, the second-largest increase ever.
- Year-to-date gains for gold are at 33%, setting the stage for its best year since 1979.
- Despite a strong US dollar, gold’s rally remains unfazed, with safe-haven appeal outweighing dollar strength amid rising global uncertainties. This trend looks set to continue.
Most Read: Brent Crude – Oil Prices Open $4 Lower After Limited Israeli Response, Where to Next?
Gold prices have smashed through the 2750 handle once more following a drop over the weekend. Following the weekend, Gold opened around 2732 before moving higher to within striking distance of the all-time highs.
The safe haven appeal appears to have returned following comments yesterday by Iranian authorities that they have the right to respond to the Israeli response over the weekend. The comments seem to have reignited the appetite of market participants for the precious metal.
Gold ETF flows are another reason that could explain the resilience of the precious metal since the weekend. According to data, gold funds received about $3 billion in new investments last week, making it the second-largest increase ever. This is more than three times the usual amount seen in recent weeks. This is continuing a trend which started during the summer months following a brief lull in demand.
The ETF and Gold fund flows have helped the precious metal maintain its gains for the year, which stands at around 33% YTD. This leaves the precious metal on course for its best year since 1979 at a time when Central Banks continue to increase their Gold holdings as well.
There is a barrage of US data on the docket this week which could affect Gold prices. However, recent data releases have proven that despite a strong US Dollar the Gold rally seems unfazed at present. Safe haven demand appears to be outweighing any sustained US Dollar strength as global uncertainties continue to pile up.
For all market-moving economic releases and events, see the MarketPulse Economic Calendar.
Technical Analysis Gold (XAU/USD)
From a technical analysis standpoint, Gold does need a daily candle close above the 2750 handle which has proved elusive thus far. A daily candle close above 2750 should embolden Gold bulls and facilitate a push toward the $2800 handle and print fresh all-time highs.
GOLD (XAU/USD) Daily Chart, October 29, 2024
Source: TradingView (click to enlarge)
Looking at the H4 chart below, the precious metal has closed above the 2750 handle twice bu failed to kick-on. Hence my thought process that a daily candle close above the psychological handle could assist bulls in pushing prices higher.
Immediate resistance rests at the most recent highs around 2758 before the 2775 and 2800 regions come into focus.
Conversely, a break back below the 2750 handle has to navigate support at 2738 and 2724 respectively before the chance of a retest of 2700 becomes a possibility.
GOLD (XAU/USD) Four-Hour (H4) Chart, October 29, 2024
Source: TradingView (click to enlarge)
Support
Resistance
Follow Zain on Twitter/X for Additional Market News and Insights @zvawda
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
