Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

Gold Hits Record High; Silver Peaks on Fed Rate Cut Speculation

Published 04/03/2024, 05:25 AM

Gold prices have soared to an all-time high of 2288.00 USD per troy ounce, while silver reached its highest in two years, driven by speculation surrounding the US Federal Reserve's monetary policy. This surge followed comments from two Fed officials, Mary Daly of the FRB San Francisco and Loretta J. Mester of Cleveland. Both anticipate three rate cuts by the Fed in 2024, although they emphasised there is no immediate need for these adjustments.

The anticipation of a more accommodative monetary policy has been the primary driver behind gold's significant 11% price increase this year, demonstrating substantial gains for what is typically considered a conservative investment. However, this optimism is somewhat tempered by the current US economic data, which presents a complex backdrop for the timing of these expected rate cuts.

Investors and market watchers are now eagerly awaiting remarks from the US Fed Chair Jerome Powell, who is expected to provide further insights into the Federal Reserve's monetary policy outlook soon.

Precious metals traditionally benefit in low-interest-rate environments since they do not offer yields like interest-bearing assets. This dynamic underscores the current rally in gold and silver prices.

Technical analysis of XAU/USD

Gold price analysis today

H4 chart analysis: the XAU/USD pair has corrected to 2230.00 USD and initiated a new upward wave targeting 2379.80 USD. Following this target, a correction towards 2270.00 USD is anticipated before the price potentially moves towards 2430.00 USD. The MACD indicator, with its signal line well above zero and trending upward, supports this bullish scenario.

Gold price analysis today

H1 chart analysis: on the H1 chart, XAU/USD has experienced a growth wave, reaching 2266.80 USD, with the market updating this peak today. A consolidation phase around this level is expected, with a breakout potentially leading to a further rise to 2310.73 USD and possibly extending towards 2379.80 USD. The Stochastic oscillator, currently below 80 and poised to drop to 50 before rising again, aligns with this forecast.

By RoboForex Analytical Department

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Latest comments

this is not only for you see this is only copy for news what did your mind in your news your cunfidentaly mind buy sell this is big froad fed rate cut decition every person i know what is your mind don't aprail fool
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.