Gold at new record highs above $3700

Acceleration through key $3700 resistance zone pushed gold price to new record high on Monday (price was up 1.1% since opening).

Shallow pullback from previous peak did not harm larger bulls and was just positioning for fresh push higher, as it reversed well above $3600 lower breakpoint.

Revived optimism of more Fed rate cuts (despite less dovish than expected post-FOMC comments from chief Powell) brightened the sentiment, along with complicating geopolitical situation after a few countries recognized the State of Palestine, that resulted in fresh rise in safe haven demand.

In addition, sustained physical buying by central banks continues to underpin yellow metal’s price.

Daily studies remain firmly bullish and supportive for further advance, with immediate targets at $3734 and $3750, guarding $3789/$3800 zone.

Daily close above $3700 is needed to validate positive signal, generated on completion of bullish continuation pattern on daily chart.

Meanwhile, bulls may face headwinds from overbought conditions on hourly and 4-hr charts, with limited dips expected to find firm ground at $3700 zone (reverted to solid support).

Res: 3734; 3750; 3789; 3800
Sup: 3707; 3700; 3663; 3627