Gold Prints New Record High at $2,141.80
Gold buyers have been pressing hard in the last several days. The Gold price has surged more than $100, printing a new high today
Gold buyers have been pressing hard in the last several days, as uncertainty regarding central banks is keeping the demand for XAU high. The Gold price has surged more than $100, pushing above $2,100 yesterday, while today buyers have broken the all-time high, which stood around $2,134 before, now it comes at $2,141.80.
Gold Daily Chart – MAs Unable to Catch Up
Gold Technical Analysis – The Surge Is Not Ending
Gold has been exhibiting behavior reminiscent of a cryptocurrency in the last two weeks, experiencing a major surge that doesn’t seem to stop. Today, it surged by another $30, reaching $2,141.80 per ounce and surpassing the spike high observed in December. This marks the fourth consecutive day of gains for GOLD and the upside is only picking up pace.
The breach above the $2,100 level is noteworthy, as it has historically provided resistance for Gold prices for decades. The rally in XAU/USD reflects a broader trend towards safe-haven assets, as evidenced by the decline in US bond rates today. Treasury rates fell by 7 basis points to 4.14%, notably lower than the recent peak of 4.35%.
US Economy Is Still on the Right Track
In the past week, market sentiment has reflected concerns that seem like the US economy is heading to a recession again, or at least perceptions of weak economic data akin to a scenario where the GDP is falling, while the opposite is true. Despite this sentiment, the actual economic data has only shown softness in second-tier indicators, lacking significant evidence of a slowdown or the need for rate cuts. Surprisingly, both the University of Michigan survey and the ISM Institute data signaled a notable decline in US business and consumer sentiment in February, contrary to analysts’ expectations, which had anticipated an improvement.
However, despite these disappointing indicators, the market’s expectations for US interest rates have remained largely unchanged. This lack of reaction suggests that the earlier decline in gold prices, driven by reduced expectations for US rate cuts, may have been excessive. As a result, the recent rally in the gold market indicates a reassessment of the economic landscape, where the previous pessimism regarding US interest rates is being reevaluated. This suggests that investors are now viewing the earlier decline in gold prices as overdone, leading to renewed interest and investment in the precious metal.
Gold Live Chart XAU
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