Gold Hits New Record, Surging Above $3,900 an Ounce!
Gold surged past $3,900 per ounce for the first time on Monday (October 6th). This surge occurred as investors sought a safe haven amid the weakening Japanese yen and the US government shutdown. The uncertain situation has made gold once again sought as a hedge, especially as the market is increasingly confident that the Fed will cut interest rates in the near future.
Early in the session, gold even hit a new record at $3,944.63 per ounce before gradually stabilizing. As of 06:31 GMT, the spot price was still up around 1% at $3,925.91 per ounce. In the derivatives market, US gold futures for December delivery also rose 1.1% to $3,951.60, indicating that buying sentiment remains dominant.
The combination of macroeconomic risks and expectations of monetary policy easing have made the opportunity cost of holding gold feel lower. As long as concerns about the US economy and exchange rate volatility persist, interest in gold has the potential to persist. However, market participants should remain wary of a rapid correction if sentiment improves or the Fed signals a change in direction.
At the time of writing, the gold price is at $3,932.
- Buy if the price moves within the $3,939 range.
- Sell if the price moves within the $3,925 range.
Resistance 2: $3,953
Resistance 1: $3,946
Support 1: $3,918
Support 2: $3,911
Disclaimer:
This article is analytical in nature and is not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
