✔- Gold advances and sets forth a fresh all-time high.
✔- Traders add to their positions in the precious metal after Israeli strikes on Gaza end the ceasefire deal.
✔- Gold has room to stretch higher with a German vote on spending and the Trump-Putin phone call up ahead.
Gold’s price (XAU/USD) surges again and reaches a fresh all-time high currently at $3,028 on Tuesday. The precious metal trades around $3,021 at the time of writing. The rise comes after Israel executed military operations on possible Hamas tactical positions and buildings. The move is seen as the end of the ceasefire deal, which started in January and is likely to bring more Red Sea attacks by Houthi rebels and retaliation by Hamas as a counter-response to the recent intervention by Israel.
The ceasefire failure comes just hours before United States (US) President Donald Trump has a phone call with Russian President Vladimir Putin to reach a final deal to end the war in Ukraine. Concerns are plentiful after Trump said on Sunday that Russia and the US are dividing assets amongst themselves, which would mean that Ukraine has no word in the process while Trump bypasses the North Atlantic Treaty Organisation (NATO) and the European Union (EU). Meanwhile, the German parliament, the Bundestag, will vote this Tuesday on a new budget that could boost defense spending by roughly $49 billion, Bloomberg reports.
Technical Analysis: Fueling more upside as impass grows
Gold traders have several reasons and arguments for one would push Gold higher. As several banks start to call $3,200, it sets a clear target for the coming weeks and months. However, traders will need to keep in mind that once markets are positioned in one single direction, that is the moment when the turnaround could occur.
The daily resistance levels R1 and R2 have already been taken out on Tuesday. That means the big figures are being used as guidance from here on out. Look for $3,020 and $3,030 as the following anchor points in the intraday trading.
On the downside, the intraday R1 and R2 resistances should be acting as support now. So that means $3,014 and $3,007 should support any brief pullbacks. The intraday Pivot Point at $2,994 is the first line of defense in case the $3,000 level cracks under selling pressure.
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