Gold prices are extending their rally on the back of highly supportive fundamentals, hitting a fresh all-time high in early Monday trading. Investor expectations that the Federal Reserve will deliver two further rate cuts this year are underpinning sentiment, while in Japan, a fiscal dove’s victory in a party leadership election — and likely appointment as the next prime minister — has dampened expectations of near-term tightening by the Bank of Japan. At the same time, persistent geopolitical and economic uncertainty, combined with the ongoing US government shutdown, continues to fuel safe-haven demand. Technical buying, triggered by the breach of the $3,900 level, is also adding momentum to the upward move. With the macroeconomic backdrop remaining favourable and technical signals reinforcing the bullish trend, any price dips may well be seen as buying opportunities, paving the way for further gains.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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