Gold prices rose to a record high as investors sold off US stocks, bonds and the dollar amid fears that President Donald Trump might fire Federal Reserve Chair Jerome Powell.
Gold prices soared by 2.9% on Monday, breaking through the $3,444 per ounce mark. Trump’s call for the Federal Reserve to cut interest rates immediately was seen as a threat to the Fed’s independence, causing the dollar to fall to its lowest level since the end of 2023.
Gold prices have soared by more than 30% this year as trade tensions disrupted markets and eroded trust in dollar assets, boosting some traditional safe-haven assets. The inflow of funds into gold ETFs (exchange-traded funds) and the purchases by central banks have supported the rise in gold prices, which have been climbing every month this year.
“The rapid rise in gold prices this year tells me that market confidence in the US is lower than ever before,” said Lee Liang Le, an analyst at Kallanish Index Services. “The ‘Trump trade’ narrative has evolved into a ‘sell the US’ narrative,” she said.
As the gold price rally intensifies this year, major banks are becoming increasingly optimistic about gold. Among them, Goldman Sachs predicts that the gold price could reach $4,000 per ounce by mid-2024.
A weakening dollar could also be good news for industrial commodities, as it makes products cheaper for buyers in other currencies. Copper prices rose as much as 1.4% to $9,318 a ton before settling at $9,298 at 9:36 a.m. Shanghai time. Aluminum and zinc prices also rose by more than 1%. Copper prices on the Shanghai Futures Exchange fell 0.5%, but have risen about 1.3% since the close of last Thursday.
Technical analysis:
Gold: The price continued its strong upward trend yesterday, reaching above 3470 after breaking through the 3400 mark. Today, we closely monitor the demand zone around 3435/40. If it stabilizes, we can attempt a long position; even if it sweeps through the liquidity, we can try a second buy. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Nasdaq: After breaking below the yellow zone we alerted through the plugin overnight, we will closely monitor the potential for further gains if it recovers that level intraday. Operationally, we suggest that when the price recovers above 18,050, pay attention to any bullish signals. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Crude oil: As Trump has postponed the full reciprocal tariffs for 90 days, the pressure on oil prices from recession concerns has been greatly alleviated. Within the day, we should simultaneously pay attention to the pullback confirmation signal after the momentum breaks through; as well as the new demand zone signal that emerges after the liquidity below is swept away. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and leave a message with “666”.
Today’s key financial data and events to focus on:
At 21:00, Vice Chair of the Federal Reserve Jefferson will deliver a speech at the Economic Mobility Summit.
22:00 ECB President Lagarde to be interviewed by CNBC
22:00 Eurozone April consumer confidence index preliminary value
