Gold continues to shine: hits a new all-time high for the eighth consecutive session

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Despite the fact that high interest rates usually limit the attractiveness of owning gold, an asset that does not generate interest, the precious metal has disregarded these factors so far this month, showing notable resilience.

Gold continues its impressive bullish streak, reaching historic highs for the eighth consecutive session on Tuesday. Spot gold is up 1.1%, trading at $2,363.42 per ounce, after hitting an unprecedented peak of $2,365.09.

The market eagerly awaits the minutes of the Federal Reserve’s monetary policy meeting and US inflation data to be released on Wednesday, seeking new signals about the future path of interest rates.

Despite the fact that high interest rates usually limit the attractiveness of owning gold, an asset that does not generate interest, the precious metal has disregarded these factors so far this month, showing notable resilience.

March’s Consumer Price Index (CPI) is expected to rise by 0.3% monthly, below February’s 0.4%, but above the 0.17% needed to curb inflation to the 2% target. On an annual basis, CPI is expected to increase from 3.2% to 3.4%. Core inflation, also known as core CPI, will drop from 0.4% to 0.3% monthly and from 3.8% to 3.7% annually.

Strong pressure on prices could dampen expectations of rate cuts in June, while softer inflation figures could fuel speculation about rate reductions.

Technical analysis of Gold

The rise in Gold paused near $2,350 as the Relative Strength Index (RSI) reached 84.23, its highest level since March 8. This indicates that the RSI is overbought and that the yellow metal is losing appeal for investors.

If Gold prices fall below the $2,350 zone, the daily low of April 8 at $2,303 would be exposed. Once breached, it could exert downward pressure on the yellow metal and take it to the 21-session high of March at $2,222. Further losses are anticipated around $2,200.

On the other hand, if XAU/USD resumes its ascent, buyers are targeting $2,400 and beyond.