XAU/USD Price Update: Gold Soars to $2,444.19 Amid Economic Concerns
- Market turmoil as US economic health raises risk aversion
- Wall Street plunges after disappointing US ISM Manufacturing PMI
- Gold holds near two-week highs, poised for further gains
Today’s financial markets are in turmoil as economic uncertainties take center stage. Risk aversion is prevalent, driving Gold (XAU/USD) to maintain its intraday gains near recent highs.
Asian markets saw a sharp decline, particularly in Japan, with the Nikkei dropping by 2.49% amid speculation of potential interest rate hikes by the Bank of Japan. In Europe, the US Dollar strengthened as local markets reacted to weaker-than-expected data, indicating a slowdown in the region’s economy.
The Bank of England cut interest rates by 25 basis points, but the market saw this move as a cautious step, having minimal impact on sentiment.
US economic data disappointed, with soft employment figures and a decline in the ISM Manufacturing PMI to 46.8 in July. This raised concerns about the US economy’s health, leading to a sharp sell-off in stocks. The US Dollar surged, while Gold entered a consolidation phase due to increased demand for safe-haven assets.
Gold Technical Analysis
The daily chart for XAU/USD shows strong support above $2,438.75, with buyers active around the 61.8% Fibonacci retracement level. The pair remains above key moving averages, indicating bullish momentum. Technical indicators suggest further upside potential.
In the short term, bulls remain in control, with the 20 SMA crossing above the 100 SMA. Resistance levels are seen at $2,462.30, $2,477.20, and $2,490.00, while support levels lie at $2,438.75, $2,422.90, and $2,410.80.
Overall, Gold’s price surge reflects market uncertainties and investors seeking safe-haven assets. Traders should monitor economic developments and technical indicators to gauge future price movements.