Gold prices reached a record high on Wednesday as investors seek safe havens amid uncertainty over tariffs and economic growth. The precious metal has surged about 20% in the first quarter, driven by concerns over inflation and the Trump administration’s unpredictable tariff policy.
Analysts at Bank of America predict increased demand for gold this year due to central bank buying, retail investor appetite, and a new rule allowing China’s insurance industry to invest in gold. The relative strength index (RSI) confirms bullish price momentum, but also signals potential short-term profit-taking.
Technical analysis suggests another consolidation phase before the commodity resumes its uptrend later this month. Bars pattern analysis forecasts a possible move to around $3,395 by late May. Investors should watch for crucial support levels at $3,048, $2,953, and $2,858, which may attract buying interest if defended.
A shooting star pattern emerged on Tuesday’s intraday reversal, signaling potential bearish reversal. However, a similar pattern appeared in early February, preceding a month-long consolidation phase. The RSI confirms bullish momentum but sits in overbought territory, raising the possibility of short-term profit-taking.
Key support levels to watch include $3,048, where the price may encounter support near last month’s peak, and $2,953, currently above the 50-day moving average. A deeper downturn could lead to a move to lower support at $2,858, potentially attracting buying interest.
Source: https://www.investopedia.com/watch-these-gold-price-levels-as-precious-metal-continues-hitting-record-highs-11707426