Gold possibly targets new record highs

Gold rose for the third trading session in a row, gaining more than 0.8% since the beginning of the day and reaching five-week highs earlier today at $1969.

Previously, for almost a month, gold gained strong support on declines below $1920, where the momentum of the metal lost power last May. Strong support on the dips indicates that we are seeing a new chapter in precious metal’s momentum.

The bullish optimism is also supported by the acceleration in silver, which is adding more than 2% on Monday to $25.2.

Also noteworthy is the rebound in stock price performance and trading volumes of the world’s largest gold miners.

Since the beginning of April, the rise may well be the first sign that gold is finally coming out of the bigger correction (from August 2020) and the smaller correction (from the early March 2022 peaks). This hypothesis will be confirmed by a renewal of historical highs and a move above $2070. However, the signs now suggest that a move in this direction has already begun and could be completed in a matter of weeks.

The FxPro Analyst Team