Gold price breaks all records, new peak is a matter of time

Technical charts show gold prices are rising, which is attracting speculators to buy. According to Kitco - the precious metal received some positive news when the People's Bank of China (PBOC) cut its key interest rate to support the country's stock and real estate markets.

This is China's biggest easing move since the COVID-19 pandemic. The PBOC's easing is likely to boost demand for raw commodities, including metals, from the world's second-largest economy.

Meanwhile, military conflicts in some regions of the world continue to escalate and show no signs of cooling down. This situation is maintaining the demand for safe haven gold.

Technically, December gold has the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a solid close at $2,750/oz.

In an interview with Kitco News, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said that gold's rally stems from its historical role as a safe haven.

Gold reaching $3,000 an ounce is just a matter of time, McGlone said, noting that hedge funds are positioning themselves to buy, reflecting their belief in the metal’s enduring strength.

“Hedge funds are net buyers of about 40% of gold futures,” McGlone said.

According to Nieuwenhuijs - gold analyst at Money Metals, the massive gold buying by many countries, especially from the East, has broken the correlation between stocks and gold.

The expert added that the Chinese and Saudi central banks (PBOC and SAMA) were largely responsible for the gold price rally starting in 2022. "Both have significantly increased their gold purchases after the West froze part of Russia's foreign exchange reserves," Nieuwenhuijs said.

Major overseas markets saw the US dollar index fall today. Nymex crude oil prices were higher and trading around $71.25 a barrel. The benchmark 10-year US Treasury yield is falling and currently stands at around 3.76%.