Gold displays volatile movements
Gold continued its rally in January, rising above US$5,500 an ounce to reach a new historical high having traded around the US$2,000...
Gold experienced volatile movements in 2026, soaring above US$5,500 an ounce, a new record high. Economic events and central bank accumulation drove the rally against inflation and currency devaluation. However, a hawkish stance from the new Fed chairman and ongoing geopolitical tensions caused the price to drop to around US$4,000 by March.
Uncertainty surrounding the Iranian war led hedge funds to seek gold as a diversification asset. Despite the Fed's goal of reducing inflation to 2%, it remained high, reaching 4.2% in March. The Fed maintained interest rates, leading markets to expect a rate hike in the upcoming meeting. Gold prices fell back to below US$4,500 and are trading near the 20-day moving average, with potential support at US$4,330 and US$3,960.
A break below US$4,330 could signal further decline to the US$3,960 level. A bullish scenario could emerge if US inflation rises and markets price in no further Fed rate hikes, with a break above US$4,330 and the potential to reach US$4,735 and US$4,845 levels.
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