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Gold has surged to a new all-time high, demonstrating its role as a safe haven and bucking both the US Dollar and the jump in nonfarm payrolls. Geopolitical threats, physical demand, and US dollar-related fundamentals all continued to drive the price of gold. At the time of writing, gold price is up +1.50%, trading at $2,323.84 per ounce.
With 303,000 new hires, the US Nonfarm Payrolls data for March exceeded both February’s and projections’ tallies. As a result, both the average hourly wage and the unemployment rate decreased.
According to the CME FedWatch Tool, the odds that the Fed would lower rates in June decreased even more, from almost 70% a week ago to 53.4%. The employment report backed with Fed Chair Jerome Powell’s remarks on Wednesday that the bank is not in a rush to lower interest rates. The US Dollar Index (DXY) increased by 0.15% to 104.36, indicating a strengthening of the US dollar. The yield on 10-year US Treasury bonds jumped by almost 5 basis points to 4.365%.
After Israel attacked Iran’s embassy in Syria, killing seven officers, Iran threatened to react, raising geopolitical concerns. A second increase might put more pressure on gold prices, with traders targeting $2,350.
The gold market is expected to continue rising as buyers gain traction. Even in overbought situations above the 70.00 level, the Relative Strength Index (RSI) points north. Since there are no indications that price activity is tiring, the $2,350 mark is in play. On the other hand, $2,300 would be the first support level and $2,250 would be the second.
