Gold prices recorded an increase of around 8% so far in March, reaching above $2000 an ounce before retracing lower. Speculation of a new record high for gold is rising with mounting economic uncertainty and fears of a new global financial crisis.
Expectations indicate that a new all-time high for gold prices are related to its success in achieving stability and continuity in trading above the historical resistance area around $2070, which gold tried and failed to overcome on two previous occasions.
Taking into consideration the previous upward trend formed in 2020, currently, gold prices are moving horizontally, respecting a well-defined supply zone at $2070 level.
XAU/USD Price Chart, MetaTrader 5
It is anticipated that gold prices may also be affected in the upcoming period by any developments in global political tension, as well as tensions between the major economies.
With gold prices being directly affected by interest rates and their impact on inflation, markets will have to await the Federal Reserve's direction of monetary policy, particularly after the central bank has left the field open to all possibilities in its upcoming meetings.
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