Gold has hit a new record high

Gold surged to a new record high of $2,482 early Wednesday, following a notable acceleration through the previous peak on Tuesday. The metal rose by 1.9% on Tuesday, marking its largest daily gain since December 13.

The break above the former all-time high of $2,450 signaled the end of the corrective phase between $2,450 and $2,286 and the continuation of a larger uptrend.

Rising expectations for a Federal Reserve rate cut in September, fueled by recent US inflation data and dovish comments from Fed officials, sparked fresh demand for gold.

Bulls are now targeting $2,500, but the rally could accelerate further due to favorable US rate outlook conditions, heightened geopolitical tensions, and strong demand expectations from China’s top gold consumer, despite a pause in metal purchases in May and June.

Gold prices entered uncharted territory again, with a break above the $2,500 barrier potentially exposing targets at $2,512, $2,551, and $2,574 (Fibonacci projections).

However, increased headwinds are expected as the price approaches the $2,500 barrier, with daily studies indicating overbought conditions.

Limited profit-taking is likely to lead to a price adjustment before another push higher, with the former top of $2,450 and the psychological support level of $2,400, reinforced by the 10-day moving average (10DMA), now acting as solid supports to protect against downside risk