Technical Analysis

Is Gold Hitting All-Time Highs This Year?

  • Gold futures (GC) rallied 8% in three weeks.
  • Technical analysis suggests a bullish trend with little resistance near all-time highs.
  • Geopolitical tensions and Fed interest rate speculation drive safe-haven demand.

Gold Prices Eyeing All-Time Highs After Recent Rally

Gold futures have seen a strong rally over the past few weeks, bouncing off a critical support level and now approaching all-time highs. GC is currently trading around $2010 after hitting a low of $1832 just three weeks ago. This bounce of over 8% off the lows shows renewed momentum and upside potential for Gold.

Technicals show that GC was deeply oversold in late October with an RSI reading down at 21. This indicated the pullback was exhausted and primed for a reversal. Now, the RSI has surged back up to 72.4, reflecting the rapid uptrend due to geopolitical tensions. With GC now trading just below its record high of $2085, there is little overhead resistance standing in the way besides the all-time high itself.

The recent price action has been overwhelmingly positive. Over the past 17 trading days, GC has posted 14 green days versus just 3 red days. This steady stair-step pattern reflects consistent buying pressure amid global uncertainty.

Escalating geopolitical tensions have increased safe-haven demand for gold. The conflict between Israel and Hamas combined with global protests have raised market volatility. This tendency to flock to gold in uncertain times gives tailwinds to prices and is something we should keep in mind moving forward.

Speculation has also increased that the Fed may pause its interest rate hike plans after the November meeting. This potential pivot to a more dovish stance would support Gold even more and could be the catalyst for a new all-time high.

We are optimistic on the structure of the Gold chart and note upside targets at $2080 and even new highs above $2100. Key support sits around $1975 and $1900.