Gold continues to trend higher and hit new record highs

Gold hit new record high in early Thursday’s trading, continuing to trend higher in a steep rally which extends into seventh consecutive day.

The metal continues to benefit from global economic and geopolitical uncertainty and signals of Fed rate cuts, which were reinforced by the latest comments by Fed Chair Powell.

The latest rally broke above the ceiling of broader range (2020/2023) signaling continuation of larger uptrend from 2015 low ($1046) as bulls cleared psychological $2000 barrier, which resisted attacks for over three years and signaling sustained break above next round-figure level at $2100.

Fibo projections at $2181 and $2206 (123.6% and 138.2% respectively) mark next targets, with former top at $2141 reverting to initial support, followed by broken $2100 level and rising 10DMA ($2080).

Strongly overbought daily studies suggest that some profit-taking should be expected, with limited dips to offer better levels to re-enter bullish market, as long as fundamentals remain favorable.

Markets focus on Friday’s US labor report and next week’s inflation data, which would further accelerate gains if February numbers disappoint expectations.

Res: 2161; 2181; 2206; 2226
Sup: 2141; 2126; 2100; 2080