Gold prices have reached a new all-time high, breaking above the key psychological level of $2700 per ounce

Gold broke through the psychological $2700 barrier on Friday morning, reaching a new historical high.

The price continues to be supported by looser monetary policies and increasing concerns surrounding the upcoming U.S. election. Additionally, heightened fears of further escalation in the Middle East conflict have driven up demand for the safe-haven asset.

This latest surge in gold prices has defied market analysts’ predictions, many of whom expected the price to remain capped below $2700 for the rest of the year. It also aligns with earlier forecasts suggesting that gold could reach $3000 per ounce by 2024.

Fundamental factors remain the primary driver behind gold’s rally, with favorable conditions continuing to support this bullish outlook. The possibility of further geopolitical instability could accelerate the metal’s upward momentum.

While the breach of $2700 may not lead to an immediate sharp rise, consolidation is likely before further gains, especially with overbought conditions on daily charts. Limited dips may occur, with support expected around $2685/$2676 (the previous all-time high and rising 10DMA), and further corrections should hold above $2654 to maintain the bullish trend.

A close above $2700 would generate a fresh bullish signal, paving the way for targets at $2717, $2736, $2748, and potentially higher levels at $2768 and $2800.

Res: 2717; 2736; 2748; 2768
Sup: 2700; 2690; 2685; 2676