Amid Rising T-yields, Geopolitical Concerns, Gold Reaches Fresh All-Time High

Gold has reached an all-time record high of $2,280 due to geopolitical tensions and strong US data. The recent attack of Israel against an Iran embassy in Syria on April 1 supported Gold’s rise despite higher US Treasury yields and a strong US Dollar. Economic data from the US prompted investors to flee to safe-haven assets, sending the gold metal higher. At the time of writing, XAU/USD exchanges hands at $2,280, gaining more than 1%. At the time of writing, the precious metal is trading at $2,279.70 per ounce, up +1.26%.

The US Bureau of Labour Statistics showed that job vacancies increased, revealing a tight labor market, while the US Census Bureau witnessed an improvement in Factory Orders. Federal Reserve officials, including Cleveland Fed President Loretta Mester and San Francisco Fed President Mary Daly, crossed the newswires, leading to the release of February’s Job Openings and Labor Turnover (JOLTS) summary, which revealed relatively stable job vacancies. Factory Orders in February experienced a growth of 1.4%, recovering from a -3.4% decline in January and exceeding forecasts of a 1% increase.

Cleveland Fed Loretta Mester foresees three rate cuts in 2024, balancing the risks between inflation and employment. San Francisco Fed President Mary Daly supports three rate cuts as a projection, not a promise. Fed Chair Jerome Powell responded to the latest inflation data, stating it aligned with expectations and would remain in a wait-and-see approach toward future monetary policy decisions.

Traders currently assign a 58% likelihood to the prospect of the US central bank reducing borrowing costs. The XAU/USD daily chart suggests gold is headed towards the $2,300 figure amid renewed buying pressures observed in the Relative Strength Index (RSI). As of writing, the RSI has punched above the 80.00 threshold, indicating that buyers are in charge. If XAU/USD drops below $2,250, it could sponsor a correction. Support levels include the $2,200 figure, followed by the March 8 high turned support at $2,195, ahead of extending its losses to $2,150.