XAU/USD Analysis: Gold prices have set a historic record

As the XAU/USD chart shows, gold prices rose above $2,460 for the first time in history yesterday, July 16.

The bullish sentiment is due to:

→ Waiting for the Fed to cut interest rates. Ultimately, the attractiveness of non-interest-bearing precious metals tends to increase in low interest rate environments.→ Geopolitical tensions. The assassination attempt on Trump could increase demand for a “safe haven”.→ Demand from central banks.

Reuters writes that analysts at the Commonwealth Bank of Australia believe gold prices could exceed their forecast of $2,500 an ounce by the end of 2024. “Gold’s ability to find support in any environment this year is worth highlighting,” they say.

Can the price of gold continue to rise?

Technical analysis of the XAU/USD chart provides some valuable observations:

→ Gold prices are in an uptrend (shown in blue);

→ the support level of $2290, “strengthened” by the middle line of the blue channel, pushed the price higher (represented by the arrow);→ and the bulls managed to break the level of $2385, which had acted as resistance since June 7 (represented by the arrows);→ while the bearish head and shoulders pattern (SHS)failed.

The contours of the ascending channel with this construction raise the prospect of an increase in the price of gold to its upper limit, where the psychological level of $ 2500 per ounce is also located. Therefore, the forecasts of analysts at the Commonwealth Bank of Australia could come true much earlier than the end of the year.