Gold prices rocketed through resistance late Tuesday morning to set new all-time highs as the yellow metal rides a wave of rate cut optimism and geopolitical fear into uncharted territory.
After opening the session trading at $2,421.76 per ounce, spot gold began a steady climb shortly after 9:00 p.m. EDT, plateauing in the $2,443 area, which it tested multiple times before a sharp sell-off just after 8:30 a.m. Eastern.
But after bouncing hard at the $2,430 level just before 9:00 a.m., the yellow metal began its sharp rise, shooting to a new all-time record high of $2,465.34 shortly before noon EDT.
Spot gold has since pulled back to just below $2,460 per ounce, and remains up 1.53% on the session.
Noted gold bull and crypto critic Peter Schiff was quick to share his views on the development.
“Gold just hit another record high,” he wrote in an X post. “It won’t be long before it breaks above $2,500. In contrast, priced in gold, #Bitcoin is down 30% from its 2021 record high almost three years ago. Wake up and smell the bear market #HODLers.”
“Gold has broken to new all-time highs,” wrote X user Game of Trades, who shared a thread explaining the significance of today’s move. “History shows this is a BIG warning signal.”
“1st Oct 2007: Gold broke made ATH for the 1st time in 1.5 years,” they wrote. “Thereon, the unemployment rate began rising rapidly. And economic growth slowed down. Which ended in the 2008 Financial Crisis.”
“The surge in gold in 1972 and 1978 preceded destructive inflationary waves. With inflation reaching 12% and 15% respectively.”
“Historically, Gold breaking to new highs signals trouble for the economy,” Game of Trades warned. “In the 1970s, it preceded inflation, while in 2007, it foreshadowed an economic downturn. Which one is it today?”
Source: Ernest Hoffman Kitco
