GOLD spiked higher, falling narrowly short of the all-time high

20 Apr

XAUUSD ANALYSIS
- Gold spiked higher, falling narrowly short of the all-time high
- FX markets captured the flight to safety while US equity markets were shut
- Gold volatility index eyed ahead of the weekend

XAUUSD SPIKED HIGHER, FALLING NARROWLY SHORT OF THE ALL-TIME HIGH
Gold prices surged on Friday morning following reports of an Israeli strike on Iran, raising concerns of a broader conflict. The uncertainty in the Middle East has contributed to the increase in gold prices, approaching its all-time high of $2431. Although gold remains overbought on the daily chart, the bullish momentum seems to be slowing down. The support level is at $2360, with further interest around $2320. Despite a strong US dollar and rising Treasury yields, central bank buying continues to support the upward trend in gold.

21 Apr

Nota

🔹BREAKING - A majority of members of the US House of Representatives voted in favor of a bill that could effectively ban the TikTok application in the United States

- The project is part of a package of draft laws to provide aid to allies around the world worth $95 billion

- Voting is still ongoing in the Republican-controlled chamber

21 Apr

Nota

21 Apr

Nota

The USD price rose sharply after US Federal Reserve Chairman Jerome Powell mentioned that the US economy does not yet exhibit signs of inflation reaching the central bank's 2% target. He acknowledged that it might take longer than anticipated to lower interest rates. The Fed Chairman's decision on interest rates, coupled with the search for a safe investment amidst mounting geopolitical tensions following Iran's attack on Israel, further bolstered the strength of the USD.

22 Apr

Nota

ECB officials are focusing on the June 6 policy decision. This is considered when the ECB will start cutting interest rates. Villeroy has been a vocal supporter of such a move, while his more hawkish colleagues have expressed less certainty.

23 Apr

Nota

Easing concerns about widespread conflict in the Middle East have boosted investors' risk appetite, reducing safe-haven demand for gold bars. Besides, the wave of selling to take profits when gold prices rose to a record high is also the reason why gold plummeted today.