Within just 24 hours, gold has surged nearly 200 points, reaching a new peak at $4,381/ounce – a powerful and groundbreaking increase.
The reason behind this rally doesn’t only come from concerns over the ongoing U.S. government shutdown and rising geopolitical tensions, but also from growing fears that local U.S. banks may continue to face default risks. Shares of banks such as Zions Bancorp dropped 13% in a single day.
Most of these risks stem from issues with borrowers’ mortgages, exposing the potential collapse of loan portfolios – the same reason that led to the downfall of First Brands Group previously.
Therefore, gold is expected to continue its strong upward trend, and by the end of this year, it could potentially reach $4,500 or even $5,000 if conditions do not improve.
Technical Analysis:
In the short term, only consider buying gold again when there is a major correction wave:
1: Buy around 4273 – 4275 according to Fibonacci retracement.
2: Buy around 4200 – 4203.
=> Target: Previous high at 428x$/ounce.
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