Gold refreshes new high at $3,668, bulls eyeing $3,700-$3,750
|- Major Central Banks step up Gold reserve.
- Surging safe haven demand adds bullish momentum in prices.
- Gold continues refreshing record highs, hits $3668.
- Despite overbought conditions Gold Bulls eyeing $3700-$3750.
- Break below $3630-$3620 will pause Bullish momentum.
Strong safe haven demand fuelled by increasing bets on rate cut by Fed, worsening labour markets, rising unemployment in the US, Dollar Index plunging to 97 level, together make a formidable mix for Gold rising to new record highs on every move, unhindered, without any significant pullback.
Daily chart shows RSI reading above 80 indicating overbought conditions which may bring a significant correction towards immediate support zone $3585-$3575 below which retracement may extend to $3545-$3525.
On the higher side, consolidation above immediate hurdle $3668 will extend upside potential towards $3683-$3688 while major resistance sits at $3703-$3713.
Markets are closely waiting for rate cut by Fed on 17th September meeting which is likely to further weaken Dollar and boost Gold prices.
Recent releases of key employment data on ADP, Non Farm Payrolls, Jobless Claims have increased economic woes and geo political scenario remains fragile.
Though Gold remains bullish with no significant pullback, the current strength is prone to sudden profit booking risks and break below immediate support zone $3630-$3620 will prompt a quick drop to $3600 followed by $3585-$3575.
If this zone fails to hold, expect deeper retracement exposing $3545-$3525.
4 hour chart shows Gold trading inside ascending channel which urges caution on heights of a potential correctional decline with momentum shifting to temporary bearish decline towards support zone.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.