Gold reached a new record high today, fueled by escalating geopolitical tensions in the Middle East and the prospect of easing policies from major central banks this year. Investors are flocking to the safe-haven asset following a series of unsettling events. On Sunday, a helicopter carrying Iranian President Ebrahim Raisi crashed in dense fog, heightening regional instability. Additionally, a China-bound oil tanker was hit by a Houthi missile in the Red Sea on Saturday, further exacerbating tensions. The anticipated shift towards more accommodative monetary policies by global central banks is also reducing the opportunity cost of holding Gold, providing further support for its rally.
Technically, strong resistance could emerge at around 2500 to limit Gold’s up trend, at least on first attempt. There lies 161.8% projection of 1614.60 to 2062.95 from 1810.26 at 2535.69, and 100% projection of 1160.17 to 2074.84 at 1614.60 at 2529.27.
However, decisive break of 2500 would set the stage for 200% projection of 1614.60 to 2062.95 from 1810.26 at 2706.96 next. In any case, near term outlook will stay bullish as long as 2370.74 support holds.
Silver is also in strong rally at this point. Near term outlook will stay bullish as long as 29.78 resistance turned support holds. Next target is cluster projection level at 35.80/94, 161.8% projection of 17.54 to 26.12 from 21.92 at 35.80 and 100% projection of 11.67 to 30.07 from 17.54 at 35.94.
