Spot gold rises above $3,660 per ounce, up 0.66% intraday.

Spot gold rises above $3,660 per ounce, up 0.66% intraday.

In a significant development, spot gold prices have surged above $3,660 per ounce, marking a 0.66% intraday increase. This surge comes on the heels of a sustained bullish trend that has seen gold prices reach new all-time highs. The latest price movement underscores the enduring appeal of gold as a safe-haven asset, particularly in the face of global economic uncertainties and inflationary pressures.

The current price action is part of a broader bullish acceleration phase for gold, driven by several key factors. Lower opportunity costs, stemming from declining interest rates, have reinforced the current bullish momentum. Since Fed Chair Powell's dovish speech at Jackson Hole on August 22, the 10-year US Treasury real yield has decreased by 19 basis points to 1.66% . This decline in interest rates reduces the opportunity cost of holding gold, thereby supporting stronger demand and contributing to the price appreciation.

Technical indicators also suggest a bullish bias for gold. The hourly RSI momentum indicator has managed to find support at its parallel ascending support after exiting from its overbought zone in today's Asia session. The current price action of gold is classified as a bullish acceleration movement, depicted by a steeper minor ascending channel .

The latest intraday high of $3,660 comes just days after gold hit a fresh intraday record high of $3,655. The price movement is significant, as it marks another step in gold's ascent to new all-time highs. However, it is essential for investors to remain vigilant and monitor key technical levels, such as the US$3,600 short-term support and the US$3,670 intermediate resistance .

While the latest price surge is encouraging for long-term holders, new investors must consider the elevated entry point. The higher price may reduce immediate upside potential and increase the risk of price correction. Therefore, it is crucial for investors to adopt a balanced approach, considering dollar-cost averaging or exploring other uncorrelated assets to diversify their portfolios.

The sustained Gold Price Surge underscores a broader trend: investors are increasingly seeking assets that can withstand economic shocks and preserve wealth. Whether it’s the tangible gleam of gold or the digital promise of cryptocurrencies, the demand for uncorrelated assets is strong. This record-breaking achievement for gold serves as a powerful reminder of market dynamics and the continuous evolution of investment strategies in a complex global economy.

References:
https://bitcoinworld.co.in/gold-price-surge-all-time-high/
https://www.marketpulse.com/markets/gold-xauusd-technical-overbought-but-bullish-trend-remains-intact/