Surge Continues

Gold has surged by as much as 1.0% to reach a new all-time high of $2354 during today's Asia-Pacific session, following a 1.7% increase in Friday's closing. This recent upward momentum has occurred despite a rise in US Treasury yields during post-US Payrolls trading. The precious metal's ascent has been supported by a decline in the USD from its recent peak level, while tensions in the Middle East persist as a significant factor influencing market sentiment.

• (Bloomberg) -- Gold’s scorching run to an all-time high may seem easy to explain from a distance, given the fractious geopolitical climate and murky outlook for the global economy. The precious metal is famously seen as a “safe haven,” and the general view is that bullion prices should rise when interest rates fall — which many investors expect will happen later this year. (See link)
• According to MNI’s technicals team, the latest extension puts prices back into technically overbought territory on the 14-day RSI – although that's been no barrier to the persistent rally in precious metals in recent weeks.
• Having broken the $2,300 handle, the next objective is $2,329.50, a Fibonacci projection, which was tested in this session.