Gold hits fresh record highs above $3700

A strong break through the key \$3700 resistance zone propelled gold to a new record high on Monday, with prices rising 1.1% since the open.

The shallow retreat from the previous peak proved to be a brief consolidation rather than a setback, as the move reversed well above the \$3600 support area and set the stage for renewed upside momentum.

Market sentiment improved on revived expectations of further Fed rate cuts, despite Powell’s less dovish post-FOMC remarks. Geopolitical tensions also supported safe-haven demand, particularly after several countries recognized the State of Palestine.

Sustained physical purchases by central banks remain another key factor underpinning gold’s strength.

Technical studies on the daily chart are firmly bullish, reinforcing scope for further gains. Immediate upside targets lie at \$3734 and \$3750, with the \$3789/\$3800 zone as the next key objective.

A daily close above \$3700 is required to confirm the bullish continuation signal on the charts.

Near-term, overbought conditions on hourly and 4-hour charts may pose resistance, though any limited pullbacks are expected to hold firm around the \$3700 area, which has now turned into strong support.

Res: 3734; 3750; 3789; 3800
Sup: 3707; 3700; 3663; 3627