Gold broke above psychological $3000 barrier on Friday. Historical move through a milestone came a bit faster than expected, although I predicted this in my comments and live presentations last year, as a bigger picture, particularly fundamental, was clearly pointing to such scenario.
Thursday’s fresh acceleration higher took out previous record high and boosted signals for attack at $3000 that materialized today.
The latest negative developments in geopolitical and economic fields accelerated migration into safety, which will likely persist as there are no significant encouraging signals on the horizon.
Trade war is gaining pace and threatening to further hurt already fragile conditions in most large economies, with deepening economic crisis to spill over through the smaller economies.
Geopolitical situation, like another key driver, is darkening, with signals of more Fed rate cuts adding to supportive signals.
However, clear break higher is likely to take some time, due to significance of $3000 barrier, with initial technical support at $2980 (hourly higher base) remaining intact for now.
Shallow correction, in the first scenario, should stay above $2980, while deeper pullback should find firm ground above former record high ($2956) to keep larger bulls in play.
Close above $3000 is needed to validate bullish signals and unmask targets at $3032 and $3050 (Fibo projections 161.8% and 176.4% respectively).
Res: 3004; 3017; 3032; 3050.
Sup: 2986; 2980; 2956; 2942.
