Gold Records New All-Time High $23 Above Previous One

Gold Records New All-Time High $23 Above Previous One

Gold (XAU/USD) continued on a strong bullish trend through the early European session and was last spotted trading close to its new all-time high.

Growing worries over the deteriorating US-China relations drove investors to seek refuge in traditional safe-haven assets. This, consequently, caused gold to maintain its bullish momentum through Monday, making it the seventh consecutive bullish session.

Also, increasing concerns over the halt of any recovery in the US economy coupled with intense selling around the US dollar bolstered the dollar-denominated commodity even further.

Meanwhile, it appears as though the possibility of the US Fed adding additional stimulus to bolster the economy is already getting priced-in across markets. This could be observed in the prevailing decline in the US Treasury bond yields, which supported the non-yielding precious metal even further.

Moving on, market participants will be looking at the US economic docket—which features the US Durable Goods Order data release—for subsequent trading opportunities later today.

XAUUSD – Hourly Chart

Gold (XAU) Value Forecast — July 27

XAU/USD Major Bias: Bullish

Supply Levels: $1,944, $1,950, and $1,960

Demand Levels: $1,930, $1,915, and $1,900

Gold has gotten a taste of intense bullishness and appears to not be relinquishing it anytime soon. The yellow metal picked up additional momentum over the weekend following several favorable fundamental factors. Also, the strong “follow-through” buying pressure can be attributed to the defeat of the previous all-time high level ($1,921) set in September 2011, where buyers seized the opportunity and took the commodity even higher.

We have, once again, wandered into overbought conditions, and buyers will be cautious at this level considering the growing risk-on mood.

That said, we will be waiting for a slight pullback in the near-term where gold would most likely pick up more dip-buyers before expecting further climbs.

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