XAU/USD Hits Record High of $2,646.50
Gold prices continue to soar, reaching a new record high of $2,646.50, driven by a combination of factors impacting the market. Let’s take a closer look at what’s been happening in the world of XAU/USD:
Market Sentiment and US Dollar Weakness
- Market players anticipate another 50 bps rate cut by the Federal Reserve.
- Recent United States data has disappointed, leading to a decrease in demand for the US Dollar.
- XAU/USD continues to trade at fresh record highs, showing no signs of slowing down.
Gold price surged to new heights, hitting $2,639.99 per troy ounce during Asian trading hours and rising even further after Wall Street’s opening. The ongoing weakness in the US Dollar has been a key driver behind this bullish trend, with market sentiment favoring safe-haven assets like gold.
US economic data released recently has added to the bullish momentum, with consumer sentiment deteriorating in September. The Consumer Confidence Index fell to 98.7, down from 105.6 in August, signaling potential economic challenges ahead. As a result, investors are now speculating that the Federal Reserve may implement another 50 bps rate cut in November.
Looking ahead, the focus will be on the upcoming release of the August Personal Consumption Expenditures (PCE) Price Index, which could further impact market dynamics.
XAU/USD Technical Analysis
XAU/USD is currently trading around $2,645 with strong bullish momentum. Here’s a closer look at the technical indicators:
- The daily chart shows a pattern of higher highs and higher lows, with technical indicators signaling a bullish trend.
- The 20 Simple Moving Average (SMA) is well above the current price, indicating strong support levels.
- In the near term, there may be some potential for a corrective slide, as indicated by subtle divergences in the 4-hour chart.
- Support levels: $2,628.10, $2,613.50, $2,598.10
- Resistance levels: $2,650.00, $2,675.00, $2,690.00
Overall, XAU/USD remains in a strong bullish trend, supported by market sentiment and technical indicators pointing towards further upside potential.