Gold prices steady as traders assess Fed rate outlook after soft US data
Monday saw gold stock nudging back above the $3,000 mark in the early hours and steadily climbing, registering a fresh record intra-day high of $3,028 on the European open. The precious metal had previously edged above $3,000 on Friday and again on Sunday, but it was unable to sustain that level, closing below it on both days.
The momentum this morning suggests a change might be underway, with the potential for further gains if the $3,000 level can hold as support. Silver has also experienced significant gains, crossing back over $34 per ounce. However, it faces a challenge to surpass October’s highs, which are just below $35.
Achieving this milestone is crucial for silver to maintain bullish sentiment and possibly reach its all-time high from 2011, which is just under $50. The current trend indicates a northward path for both precious metals, with gold leading the way.
The recent movements in gold and silver come amid a backdrop of market dynamics where traders are closely watching the $3,000 threshold. Should a downside correction occur, the ability of this level to serve as a support will be a key factor in determining the likelihood of continued upward movement for gold prices.
Senior Market Analyst at Trade Nation, David Morrison, commented on the situation, stating, "It certainly feels as if the path of least resistance is pointing north for now, particularly with gold."
Morrison also noted that while a downside correction wouldn’t be surprising, the resilience of the $3,000 support level could signal further advances for the precious metal.
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