According to FXStreet, the world gold price (XAU/USD) hit a record high today, thanks to the weakness of the US dollar. The Federal Reserve (Fed) has started to cut interest rates and the expectation of further cuts this year could help boost the price of gold. In addition, the rising tensions in the Middle East could cause many people to seek gold as a safe asset.
Looking ahead, traders will be watching preliminary data on the US PMI index, due later in the day. If the results are better than expected, the US dollar could rise and put pressure on gold prices, as gold is priced in US dollars.
Gold prices are expected to continue to rise during the day. Gold is holding a strong uptrend on the daily chart and is above the 100-day moving average, a key support level. However, the 14-day RSI suggests that there may be a period of downside correction before gold prices continue to rise in the short term.
Gold is currently struggling at a key resistance zone, near its all-time high of $2,625. If it breaks above this level, the price of gold could rise to $2,700.
Conversely, if gold prices fall, the first target would be $2,600. If this level is broken, gold prices could fall to the next level at $2,560. A deeper drop is at $2,485.
According to Lao Dong, at 2:00 p.m. on September 23, after a slight decrease, the world gold price increased sharply, setting a new record at a price fluctuating around 2,625 USD/ounce.
