Gold reached a fresh all-time peak amid increasing optimism for a Federal Reserve interest rate reduction in June

Gold surged to a new all-time high of $2265 as trading resumed on Monday following the Easter break. The metal kicked off the month on a strong bullish note, fueled by anticipation of a Federal Reserve interest rate cut in June, with betting markets currently indicating a 69% likelihood of such a move.

Last week saw gold advance by 3%, and March witnessed an impressive 9.3% surge, marking its most significant monthly rally since July 2020. Contributing to this bullish sentiment was the rapid ascent between key levels of $2100 and $2200, alongside a monthly close above $2200.

Bullish momentum broke through the initial target at $225, corresponding to the Fibonacci 138.2% projection of the uptrend from $1614. This breakthrough, coupled with a closing above this level, strengthens the bullish outlook, potentially propelling gold towards psychological barriers at $2300 and $2359, represented by the Fibonacci 161.8% projection.

While daily indicators suggest a bullish stance, they also signal overbought conditions, which could present challenges for further upside movements, potentially leading to a period of consolidation.

Initial support is expected at the former record high of $2222, followed by a more significant zone around $2200 to $2188, which includes psychological support levels and the rising 10-day moving average. Ideally, these levels should contain any downward movements, preserving the broader bullish trend.

Res: 2265; 2300; 2359; 2400

Sup: 2222; 2200; 2188; 2172