He Gold rose 0.7% this Wednesday and has once again renewed its all-time highsalso managing to break the barrier of $2,800 per ounce for the first time.
David Morrisonsenior market analyst at FCA, highlights that Momentum for the precious metal «remains on the rise»although below the overbought levels seen in late September,» adding that «there is less room compared to mid-October.» «All moving averages are stacked bullishly, with the 50 day below the 20 day and the 100 day comfortably below both. The last time the three converged was in mid-February, just before the start of this stage of the rally, when gold was trading below $2,000 an ounce. So, everything looks like chaos for the bulls, and that also means it's time to be extremely cautious,» he notes. For his part, Bas Kooijman, CEO and asset manager of DHF Capital, assures that the increases in the price of gold were «driven by the strong demand amid global uncertainty«. «The ongoing presidential elections in the United States have introduced a risk premium in the marketsparticularly as Trump gains support, raising concerns about tariffs, inflation and fiscal issues. In addition, geopolitical tensions continue to reinforce gold's status as a safe haven asset,» he details. In addition, he is also optimistic about gold's future prospects, and assures that current market conditions «could potentially support a constant growth of gold towards the level of $3,000 per ounce in 2025«.