Gold pushes rally further into uncharted territory

Gold climbed to a new record high of \$3659 in early Tuesday trading, extending the sharp 1.5% rally from Monday that drove a decisive break and close above the key psychological \$3600 barrier.

Fresh US labor data confirmed that market conditions continue to deteriorate, with weakness deepening in August, reinforcing strong expectations that the Federal Reserve will cut rates at next week’s policy meeting.

Political uncertainty also added fuel to safe-haven demand, with the US embroiled in renewed crisis following attempts to reshape the Fed, France facing turmoil after its government collapsed, and the UK grappling with persistent instability.

Geopolitical risks remain elevated, with intensifying clashes in Ukraine and the Middle East, fresh turmoil in Venezuela, and a worsening economic outlook across Europe all contributing to the latest rush into gold.

The technical backdrop stays firmly bullish, though overbought conditions on the daily chart—despite RSI and Stochastic still pointing higher—suggest momentum could start to face resistance.

In the near term, consolidation and shallow pullbacks look likely, as sentiment remains strongly in favor of bulls. The broken \$3600 level now acts as solid support and is expected to limit dips, positioning the market for a fresh push towards \$3690 and the \$3700 round figure.

Res: 3668; 3690; 3700; 3434
Sup: 3628; 3600; 3577; 3540