Gold punches up to yet another record high!

Spot gold is now tantalizingly close to the $2400, amid a seemingly unrelenting year-to-date advance of 15.7%.

Still, gold’s eye-watering ascent is somewhat perplexing, especially in light of the US dollar’s rebound on lowered bets for Fed rate cuts this year after this week’s hotter-than-expected US CPI data.

The Relative Strength Index (RSI) is also signaling caution as it is currently sitting in an overbought territory, which may potentially result in a technical correction.

The market narrative can certainly point to the persistent fears surrounding geopolitical tensions as the major catalyst for bullion.
 

The apparent buying spree by central banks, coupled with lingering fears over economic risks offer added tailwinds for the precious metal.

However, such themes have been at play for some time now and not quite coinciding with the timing of gold’s recent spike up.

Still, gold would almost certainly lurch even higher if Iran does attack Israel.

From a technical perspective, the upside potential is underscored by key simple moving averages (21, 50 & 100 SMAs) that are well below the current price.