Gold price hits fresh all-time high
Gold price (XAU/USD) enters a bullish consolidation and oscillates in a narrow range near the all-time peak touched during the Asian session on Friday, News.Az reports citing FX Street.
Investors remain worried about US President Donald Trump's aggressive trade policies and their impact on the global economy, which, in turn, continues to underpin demand for the safe-haven bullion.
Apart from this, rising bets for further monetary policy easing by the Federal Reserve (Fed) turn out to be another factor that benefits the non-yielding yellow metal.
However, some follow-through US Dollar (USD) buying, for the third straight day, along with a slight improvement in the global risk sentiment, keeps the Gold price below the $3,000 psychological mark. Furthermore, overbought conditions on the weekly chart seem to hold back bullish traders from placing fresh bets around the XAU/USD pair.
Nevertheless, the precious metal remains on track to register strong gains for the second straight week and the fundamental backdrop supports prospects for additional gains.
Gold price needs to consolidate before making a sustained move above $3,000
From a technical perspective, this week's breakout through the $2,928-2,930 horizontal resistance and a subsequent move beyond the previous record high, around the $2,956 region, could be seen as a fresh trigger for bulls. That said, the Relative Strength Index (RSI) on the daily chart remains close to the overbought territory and makes it prudent to wait for some near-term consolidation or a modest pullback before the next leg up. The broader setup, however, suggests that the path of least resistance for the Gold price remains to the upside and supports prospects for an extension of a nearly three-month-old well-established uptrend.
In the meantime, any meaningful corrective slide is more likely to attract fresh buyers near the $2,956 area, below which the Gold price could drop to the $2,930-2,928 horizontal resistance breakpoint, now turned support. The latter should act as a key pivotal point and a convincing break below might prompt some technical selling, which should pave the way for deeper losses. The XAU/USD pair might then accelerate the fall towards the $2,900 round figure en route to the $2,880 region, or the weekly low touched on Tuesday.
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