Gold Reaches Record High at $2,789.72
- United States Economy Shows Resilience
- Focus on US Presidential Election and Federal Reserve Decision
- XAU/USD Bullish Despite Overbought Conditions
Gold hit a new record high of $2,789.72 per troy ounce, showcasing its strength in the market. Although there was a slight retreat after the opening of Wall Street, buyers stepped in around $2,770, pushing the price back towards the record high.
The US Dollar reacted positively to recent economic data, including an impressive ADP report showing 233K new jobs added in October, beating expectations. Despite the GDP growth coming in slightly below expectations at 2.8%, the overall economic indicators remained stable, leading to a positive sentiment in the market.
With the upcoming Federal Reserve meeting and the uncertainty surrounding the US presidential election, investors are turning to Gold as a safe haven asset. Demand for Gold is expected to outpace the USD in risk-averse scenarios, providing support for the precious metal.
Looking ahead, the US will release more economic data, including the September PCE Price Index and the October Nonfarm Payrolls report, which could impact the market sentiment.
XAU/USD Short-term Technical Outlook
Technically, the XAU/USD pair remains bullish despite being overbought. The daily chart shows the pair trading above all its moving averages, indicating strong buying interest. Technical indicators, while in overbought territory, still show potential for higher highs before a significant correction.
On the 4-hour chart, the upward momentum remains strong with buyers taking advantage of any dips in the price. The 20 SMA is well below the current level, supporting the bullish sentiment. Resistance levels are seen at $2,790.00, $2,810.00, and $2,825.00, while support levels are at $2,770.90, $2,757.30, and $2,742.50.
In conclusion, Gold continues to show strength in the market, supported by economic uncertainties and a bullish technical outlook. Investors should keep an eye on upcoming economic data releases and market developments to make informed investment decisions.