Spot gold price rockets through resistance on Sunday evening, setting new all-time highs
Spot gold opened the Sunday evening session with massive momentum, obliterating key resistance levels and the previous high to set a new all-time high of $2,148.99 within the first half-hour of trading.
Gareth Soloway, Chief Market Strategist at InTheMoneyStocks.com and President of VerifiedInvesting.com, told Kitco News that the move was driven by a powerful combination of rate cut expectations and technical levels.
“Gold surged through its all-time highs on the back of hopes for lower rates sooner (vs higher for longer), future money printing expectations and stops being triggered on the break of $2,100,” he said. “The inverse head and shoulder pattern has triggered (assuming a daily close above $2,080).”
Soloway said a “calculated target for 2024 sits at $2,534,” which would represent a completion of the inverse head and shoulders pattern breakout.
“Investors are likely to favor gold as a way to protect against recession, inflation, money printing and the classic safety trade,” he added.
Matt Simpson, Market Analyst at CityIndex and Forex.com, wrote on X that traders need to be cautious about what this move means for gold prices as it happened while liquidity was low.
“Gold just made minced meat out of the 2022 / prior record high, rising $75 at the open and smashing above its 1-week implied volatility band,” Simpson said. “Lots of gold headlines are to be expected. But I remain suspicious of the move, given it occurred during low liquidity trade.”
Simpson admitted that he completely missed the move, but he’s also “happy to sit on the side line and avoid the inevitable chop that could follow.”
After setting the new all-time high shortly after 6:30 pm EST, spot gold has ratcheted steadily lower, last trading at $2,091.48, but still up nearly 1.00% on the session.
By
Ernest Hoffman
For Kitco News
David