Gold Price Surges to New Record High Above $2,700

As of Friday, October 25, 2024, the gold price has reached a new all-time high, breaking above the $2,700 psychological level. This significant milestone is driven by growing prospects of a globally lower interest rate environment, which makes gold a more attractive investment as a non-interest-paying asset.

The current gold price is trading at around $2,714 per ounce, marking a fresh record high. This uptrend is supported by central banks accelerating their monetary easing cycles. For instance, the European Central Bank (ECB) recently cut its deposit rate by 25 basis points, the second rate cut in a row, indicating a significant acceleration in the ECB’s easing cycle.

Despite the strong US Dollar, gold has ignored the broad-based USD strength and continued to advance. The Relative Strength Index (RSI) is currently overbought, suggesting that long-holders should be cautious about adding to their positions due to the increased risk of a pullback. However, the overall uptrend indicates that any corrections are likely to be short-lived.

The gold price surge is also influenced by robust economic data, although US data suggests a less aggressive approach from the US Federal Reserve. Strong US Retail Sales and resilient labor market data have positively impacted the future path of monetary policy, with markets pricing in a high likelihood of a 25 basis points cut in the fed funds rate in November.