Gold’s Hot Trumpet Plays on Wall Street
Since January, gold’s been playing a game of range‑trading—staying in the same price band, like that kid who can’t decide whether to go left or right. But the past week, the metal made a quick stopover, kicking its value from $2,023 to $2,080.
Why it’s heating up
- Fed on the—with folks whispering about “rate cuts,” the jewels of the dollar are wobbling.
- US Treasury yields–the lower the yield, the more attractive gold gets, especially when the two‑year note takes a dip.
- Key economic data–the February ISM Manufacturing PMI and construction spending made the market feel like a roller‑coaster going down.
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Analyst Take: Saqib Iqbal thinks the rally could keep rolling this March
“Gold’s been staying right above $2,000 since the year’s start, despite the dollar’s swagger,” saunters Saqib. “Now that the Fed’s hinting at cuts, the pattern’s shifting, and the metal’s poised to stretch toward $2,200.”
Charts? Yep. Bullish vibes? You bet.
The weekly Marubozu candlestick looked like a bright, unmistakable bullish bet, and gold has comfortably crossed its 200‑day moving average. On paper, the next big hurdle is a resistance at $2,210, with a $2,260 level looming just beyond. If the price dives past the $2,064 support, it could stumble toward $2,046.
Why central banks are cluing in
World Gold Council data says the fourth quarter of 2023 saw a surge in “official” gold holdings—an addition of 229 tons, nudging total demand near a record of 1,037 tons.
- People’s Bank of China and the National Bank of Poland became the main movers in this tidy heap.
- Reserve diversification and geopolitical uncertainty are pushing banks to stash gold like a safety‑first candy stash.
Bottom line
Gold’s jump last Friday is not just a fluke—it’s a sign of a bullish pattern looking on for more climbs. If things keep trending up, a trip to $2,200 might be just a few weeks away. Keep your eyes peeled; the market’s not about to spice without a warning.
