XAU/USD: Gold Surpasses $3,000 Milestone

Gold has officially surpassed the notable $3,000 mark, achieving this significant milestone on Friday. This momentous leap in value came slightly quicker than anticipated. However, I had previously hinted at this development during my discussions and presentations last year, as the broader economic context was clearly indicating such a possibility.

The sharp increase observed on Thursday broke through the previous record high, setting the stage for the successful breach of the $3,000 level that took place today.

Recent negative trends in both the geopolitical landscape and the economy have intensified the shift towards safe-haven assets like gold, a trend that seems likely to continue in the absence of any positive indicators on the horizon.

The current trade war is intensifying and poses a threat to already vulnerable economic conditions, with a deepening crisis potentially affecting smaller economies as well.

From a geopolitical standpoint, the situation remains concerning. Additionally, indications of further rate cuts by the Federal Reserve are contributing to the supportive environment for gold prices.

Despite this bullish momentum, a sustained break above the $3,000 level may require some time, given the psychological significance of this barrier. Presently, the first technical support level sits at $2,980 (an hourly high base) and remains intact.

In the most likely scenario, any minor corrections should remain above $2,980, while a more significant pullback should find solid support above the prior record high of $2,956 to keep the larger bullish trend intact.

A close above $3,000 is crucial to validate the current bullish signals, unveiling potential targets at $3,032 and $3,050 (which correspond to the Fibonacci projections of 161.8% and 176.4%, respectively).

Resistance Levels: 3,004; 3,017; 3,032; 3,050.
Support Levels: 2,986; 2,980; 2,956; 2,942.

Gold, Milestone, Market