Gold Record High Near $2,700, As Central Banks Keep It Bullish

Gold has made a new record high today at $2,696.74 after breaking September’s high of $2,685, as the global situation keeps buyers in control. The elevated geopolitical tensions, as well as the monetary easing by central banks, have directed investment funds toward safe havens such as Gold and Silver, which are benefiting immensely from this.

Early last week, a shift in risk sentiment in financial markets, spurred by the absence of a larger conflict in the Middle East, led to a drop in gold prices. However, the 20-day Simple Moving Average on the daily chart offered support around $2,605, sparking a recovery that was aided by developments in China.

Gold Chart H1 – MAs Keeping XAU Supported During Pullbacks

Gold has shown resilience for over a week now, with strength building as risk currencies trend lower. Today, gold prices surpassed the September record high, setting a new all-time high just shy of $2,700, before pulling back around $10 as buyers struggled to maintain momentum beyond that level. The smaller moving averages such as the 20 SMA (gray) are providing support for XAU/UD recently, which shows that the buying pressure is strong and buyers are not waiting for deeper pullbacks.

ECB Policy Easing Helping Gold Buyers

The ECB’s recent rate cut and dovish comments have weighed on the Euro and GBP, which in turn has boosted gold by $90 this week alone. The bullish breakout today at $2,685.44 brought prices near $2,700. Meanwhile, Chinese equities have continued to slide, unwinding some of the gains made in October.

Chinese investors Turn to Gold Again as Chinese Stocks Retreat?

Earlier today, Chinese officials hinted at a significant announcement aimed at bolstering the real estate sector, but the measures ultimately fell short of expectations, leading to a steep decline in property stocks. In China, investors generally favor real estate, stocks, or gold.

With the recent surge in stock prices leaving some investors on the sidelines and property stocks lagging due to unimpressive policy support, gold has become the preferred investment option. This has fueled the current rally, and a break above the key $2,700 level seems increasingly likely, as gold’s upward momentum suggests a potential climb toward the $3,000 mark in the near term.

Gold Live Chart