Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Friday’s gold market surge is still going strong since all of the market’s moving parts appear to be pointing towards higher prices in the end. The price of the precious metal has increased by 2.08% to $2086.50 per ounce as of this writing.
The early hours of Friday saw a slight rally in the gold market as upward pressure persisted. The $2060 level continues to be an area that a lot of people will pay attention to, as it has been resistance previously, that is more or less a resistance zone up to the $2075 level.
The XAU/USD Index climbs back on the softer US dollar’s performance following US ISM PMI numbers that missed estimates, fueling investor appetite. Hopes for Fed rate cuts mount with each data print that suggests easing inflation.
The US ISM Manufacturing Purchasing Manager Index (PMI) came in below forecasts on Friday, which gave investors new hope that the Federal Reserve (Fed) will lower interest rates sooner rather than later. This gave spot gold a fresh boost.
The US ISM Manufacturing PMI for February unexpectedly slid back on Friday, printing at 47.8 versus the forecast increase to 49.5 against the previous month’s 49.1.
The Fed is cautiously optimistic that inflation is beginning to decline, according to the Fed’s most recent Monetary Policy Report, which was released on Friday. However, there are still significant obstacles to overcome, such as a tight labour market and persistent price increases for housing and rent due to housing supply restrictions.
Spot Gold is rallying hard on Friday, crossing $2060.00 in the early US session and cracked $2080.00 at the time of writing. Near-term XAU/USD bids caught a technical bounce from the 200-hour Simple Moving Average (SMA) near $2030.00.
The price handle of $2100.00 is where the XAU/USD daily candlesticks are expected to break, and the closest technical ceiling beyond that is located close to the all-time highs of $2144.48, which were reached in early December.
