Gold Price News: Gold’s Ascent Continues as Bullish Mood Prevails

Gold prices pushed higher to another all-time high on Tuesday, as the markets continued to mull a raft of supportive factors, including a summit in Russia where a gold-backed currency may be discussed.

Prices notched up a fresh record of $2,748 an ounce on Tuesday, surpassing Monday’s peak of $2,740 an ounce.

The recent bullish factors appear to remain in play for gold, notably the elevated geopolitical risk environment due to conflicts in the Middle East and Ukraine, and the recent start of monetary policy easing by major central banks.

BRICS summit gets under way in Russia

A three-day BRICS summit got under way in Kazan, southwest Russia, on Tuesday, with interest in the possibility of a new currency to be launched by the BRICS group of countries. The summit – the largest gathering of world leaders in Russia for decades – has prompted interest in the precious metals markets as the new currency could be partially backed by gold.

The summit comes against a backdrop of central banks switching their reserves out of US dollars toward other assets including gold. However, it remains to be seen if any tangible moves emerge on the idea of a gold-backed BRICS currency at the meeting.

Technical factors applying to gold

On the technical charts, gold’s renewed strength at the start of this week means the yellow metal has pushed up through oblique major resistance at $2,739 an ounce, while oblique major support is seen at $2,651 an ounce.

Events to watch out for

Looking ahead, Wednesday will see an interest rate decision by the Bank of Canada, with the markets expecting a hefty 50-basis point cut to 3.75%. Looser monetary policy is generally supportive for the price of non-yielding assets like gold, with the markets also strongly expecting another 25-basis point cut by the US Fed in little more than two weeks’ time.