Gold prices hit a record high of $2,942, driven by geopolitical tensions and a weaker US dollar. Traders await Federal Reserve Chair Jerome Powell's testimony for clues on US monetary policy.
Gold prices reached an unprecedented high of $2,942 on Tuesday, marking an over 11% surge for the year. This rally comes amidst heightened market volatility and anticipation surrounding the upcoming testimony of Federal Reserve (Fed) Chair Jerome Powell before Congress. Powell's statements are expected to provide crucial insights into the future trajectory of US monetary policy, particularly in relation to interest rates.
Gold's remarkable ascent this year has been fueled by a combination of factors, including escalating global geopolitical tensions, concerns about inflation, and a weaker US dollar. Meanwhile, the ongoing trade dispute between the United States and China, characterized by retaliatory tariffs, adds to the uncertainty in the global economy. Traders are closely monitoring the situation, as any hawkish signals from Powell regarding interest rate hikes could potentially dampen gold's upward momentum.On the technical front, gold has already exceeded its previous all-time high and is approaching the psychologically significant $3,000 level. However, potential resistance is anticipated around $2,928 and $2,950, followed by the $3,000 mark. Should the rally continue, the $3,000 level could be tested. Conversely, a correction could see support at $2,891, $2,871, and $2,835. Experts note that the current inflationary environment and geopolitical uncertainties continue to provide a tailwind for gold, making it an attractive safe-haven asset. However, the anticipated testimony of Fed Chair Powell holds significant weight, as his comments could influence market sentiment and potentially impact gold's trajectory
Gold Price All-Time High Federal Reserve Interest Rates Jerome Powell US Dollar Geopolitical Tensions Trade War Market Volatility
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