Gold price price surge has hit a new record high of $3,028 on Tuesday. As of now, it trades near $3,021. This rise is mainly due to increasing political issues and changes in the world economy.
Key Takeaways for Gold Price:
- Gold’s price has reached an all-time high of $3,028.
- Rising tensions ahead of a call between Trump and Putin about the Ukraine crisis.
- Weak US economic data and possible Federal Reserve decisions add uncertainty.
Why Is There a Gold Price Surge??
The recent increase in gold price surge prices is linked to Israel’s military actions against Hamas. This has ended the ceasefire agreement made in January. The breakdown of the agreement could lead to more problems in the Red Sea region, including reactions from Houthi rebels and Hamas.
There is also a planned phone call between US President Trump and Russian President Putin to discuss the Ukraine conflict. There are concerns that the US and Russia might make decisions without Ukraine’s input, ignoring NATO and the EU.
In Europe, Germany’s Bundestag is voting on a new budget that could increase defense spending by $49 billion. This decision could impact European markets and global investors.
Economic Issues and Market Impact
Weak US Retail Sales data has led to worries about the US economy. Because of this, investors are buying gold as a safe option. The Federal Reserve will meet on Wednesday. Experts believe there is a 99% chance that interest rates will stay the same, with a 68.6% chance of a rate cut in June.
At the same time, the silver market is facing issues due to trade-war worries. Higher borrowing rates for silver show potential risks, which are similar to the problems seen in the gold market.
Technical Analysis: Support and Resistance Levels
Gold has passed key resistance levels at $3,014 and $3,007. These now serve as support levels for traders. The next key levels are $3,020 and $3,030. If the price falls below $3,000, the pivot point at $2,994 will act as a defense level.
What’s Next for Gold?
Gold’s value as a safe-haven asset remains strong due to global tensions, uncertain US economic data, and the Federal Reserve’s careful approach. Experts see a possible target of $3,200 soon. However, traders should be careful as big moves often lead to sudden reversals.
For more insights, visit Daily Gold Signal. Stay updated with the latest gold market news through our Daily Gold Update.
