Bullion's Wall Street Boom: Technicals Suggest All-Time Highs Might Be Hit Soon

Gold is having another strong week of gains, breaching the important psychological barrier of $2,000/oz and now nearing its August 2020 record high of $2,075/oz. 

The SPDR Gold Trust ETF GLD is barely 3% away from its all-time high of $195. 

A series of bullish catalysts has fueled the precious metal's recent climb. 

On the macro front, gold has received substantial support from both China's reopening, since Chinese consumers are the world's largest buyers of the precious metal, and the U.S. banking crisis. 

Historically, the yellow metal has done exceptionally well during times of financial crisis and economic uncertainty. The gold rally is also being assisted by rising predictions of a Fed policy shift and a drop in U.S. Treasury yields, which represent a cost opportunity of investing in a non-yielding asset like gold.

Read next: Gold Eyes Record High On Safe-Haven Status, Weak Dollar, Hopes Of Softening Fed: Peter Schiff Sees 'Spectacular' Rally

BofA and Goldman Are Bullish On Gold

On top of that, several Wall Street analysts issued bullish calls on gold and raised their price forecasts. 

Goldman Sachs boosted its 12-month gold price target to $2050/toz, citing the fear and wealth effects. 

Bank of America increased its 4Q23 gold price projection to $2,200/oz, on the back of the anticipated ending of the Fed hiking cycle, which could attract more investors to the market. 

Read also: Goldman Sachs Raises Gold Price Target To An All-Time High Of $2,050 Amid Recession Fears

Gold Technical Analysis: It's Hard To Halt The Bullish Wave Momentum 

Gold has established a bullish flag pattern, which began with the November-January rally, followed by a pullback in February-March, and is currently continuing with the extension that began in mid-March. 

If the current second leg of the rally mirrors the first, which happened between November and January, gold might reach $2,070/oz, where it will test all-time highs. 

Momentum indicators continue to support this potential gold move toward the ATH. Since mid-March, the 14-day RSI has been far above 50, showing that bulls have full control of the short-term trend. 

The short-term moving averages have lately given a so-called golden cross, with the 21-dma crossing above the 50-dma, signaling a possible bullish indication.

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