XAU/USD outlook: Gold hits new historical high above psychological $2700 level
|XAU/USD
Gold cracked psychological $2700 barrier and hit new historical high on Friday morning.
Looser monetary policy conditions continue to support the price, along with growing nervousness over US election, with the latest threats of further escalation of the war in the Middle East, sparking increased demand for safe haven bullion.
Fresh rise of gold price offsets forecasts of a number of markets analysts who expected the price to stay capped under $2700 until the end of the year, while the latest advance contributes to my comments from the last year and prediction that the yellow metal would hit $3000 per ounce in 2024.
Fundamentals remain key driver of gold price with very favorable conditions supporting scenario.
It is now a matter of time when the gold will reach key target, with overheated geopolitical situation to possibly spark stronger acceleration higher in case of further deterioration of crisis.
Breach of $2700 may not result in immediate clear break higher, but with consolidation preceding further gains, as daily studies are overbought.
Partial profit taking likely to result in limited dips (ideally to be contained by $2685/$2676 (former all-time high / rising 10DMA) and not to exceed climbing 10DMA ($2654) to signal a healthy correction and provide better levels to embark larger bull-trend.
Close above $2700 to generate fresh bullish signal and open way for test of Fibo projections at $2717 / $2736 and $2748, guarding $2768 and $2800.
Res: 2717; 2736; 2748; 2768.
Sup: 2700; 2690; 2685; 2676.
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