Gold hit new record high ($2265) in early Monday’s trading, as markets reopened after Good Friday’s pause.
The metal starts the month in firm bullish mode, after softer US inflation data boosted expectations for Fed’s first rate cut in June (bets currently show 69% probability for June rate cut).
Gold advanced 3% last week and has registered a monthly gain of 9.3% in March (the biggest monthly rally since July 2020).
Adding to strong bullish stance was the record fastest rally between two round-figure levels ($2100 and $2200) as well as a monthly close above $2200.
Bulls cracked initial target at $225 (Fibo 138.2% projection of the uptrend from $1614) with close above this level to reinforce bullish structure for extension towards $2300 (psychological level) and $2359 (Fibo 161.8% projection).
Daily studies are bullish but overbought that may provide increased headwinds to bulls and pause an action for consolidation.
Former record high ($2222) offers initial support ahead of more significant $2200/$2188 zone (psychological / rising 10DMA) which should ideally contain dips and keep larger bulls intact.
Res: 2265; 2300; 2359; 2400.
Sup: 2222; 2200; 2188; 2172.
