March 5, 2024 Pola Botros

Gold carried to record high on wave of momentum with focus on US rates

LONDON, March 5 (Reuters) – Gold hit a record high on Tuesday, with growing expectation of U.S. monetary easing and continued geopolitical risk buoying activity from momentum-driven funds which could propel the precious metal further.

A wider robust fundamental backdrop added support, including strong physical demand in Asia and central bank purchases as well as billion’s traditional safe-haven cachet. Central banks have been net buyers of gold for eight consecutive months.

“The move became self-fulfilling with stops triggered and then of course that brings in the momentum funds,” 

From a technical analysis perspective, gold may still have further upside towards $2,180, a Fibonacci projection level.

“The coming days, especially with the critical economic data releases and (Federal Reserve Chair Jerome) Powell’s testimonies, will be crucial in determining whether gold can maintain its current trajectory or if we’ll see a period of consolidation,”


TFS Capital