Gold storms beyond 5,000 on safe‑haven rush
|- Gold extends six‑day rally, hitting a fresh record peak near 5,111.
- Mounting global tensions fuel flight to safety.
- Momentum indicators stretch deeper into overbought territory.
Gold is extending last week’s historic rally – its strongest weekly advance since the 2008 global financial crisis – as investors continue to flock to the safe‑haven metal amid intensifying geopolitical turmoil. After decisively clearing the 5,000 milestone and reaching a new record near 5,111, further upside appears likely, with both fundamentals and technicals supporting the move.
The stochastics, the RSI, and the MACD are all pushing aggressively higher, reflecting strong bullish momentum. The first two sit deep in overbought territory but have yet to show any signs of reversal, underscoring persistent buying pressure.
A sustained break above 5,111 would turn attention to the 261.8% Fibonacci extension of the October selloff at 5,182. Beyond that, with price action entering uncharted territory, the next psychological milestone lies near 5,300.
However, if gold reverses lower and slips back below 5,000, strong support is expected around the 200% Fibonacci extension at 4,876, followed by the 161.8% level at 4,687. The 4,570 region could then act as a floor for losses, sitting just below the 20‑day simple moving average (SMA), followed by the key 4,500 threshold, which aligns with the short‑term ascending trendline. A break beneath this latter zone would risk shifting the prevailing bullish bias to neutral.
In summary, gold appears well‑positioned to extend its impressive year‑to‑date rally of more than 17% and its six‑day winning streak. Still, periodic profit‑taking could trigger short‑lived pullbacks, with downside likely to remain cushioned within the 4,800-5,000 region.
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.