Gold Surges Beyond $1,980 USD as US GDP Concerns Mount
Gold's upward momentum continued during the early Asian trading hours on Thursday. Despite higher yields on US Treasury bonds, the precious metal surged beyond $1,980 USD, driven by risk-averse sentiment. Growing geopolitical tensions in the Middle East have heightened demand for safe-haven assets like XAU/USD.
Technical analysis on the daily chart for XAU/USD supports further upward movement, even though the pair is still trading below the monthly peak of $1,997.17. XAU/USD maintains strong performance across all its moving averages, with the 20-day Simple Moving Average (SMA) providing solid support. Additionally, technical indicators continue to trend upwards, albeit with uneven strength.
On the 4-hour chart, XAU/USD is neutral but tilting towards a price increase. The precious metal remains above the flat 20-period SMA, while the 100-period SMA continues to trend lower. Finally, technical indicators are positioned around their midlines, showing signs of a downward turn. Those speculating on a price rise will gain confidence upon breaking the mentioned monthly high.
Support Levels: $1,964.30, $1,953.30, $1,936.60
Resistance Levels: $1,997.20, $2,008.10, $2,011.95
Meanwhile, XAU/USD gained ground on Wednesday, trading around $1,982 per troy ounce. The financial markets are closely monitoring Wall Street's earnings reports while evaluating economic prospects ahead of key events scheduled for Thursday.
On one hand, the financial market anticipates significant economic growth in the US, with year-on-year growth projected to be around 2%, based on market forecasts. Such an optimistic figure may raise concerns about higher interest rates, but it could also imply that the Federal Reserve (Fed) might maintain higher rates for an extended period, as Chairman Jerome Powell has mentioned the need for sustained growth to bring inflation back to the target of 2%.
On the other hand, the European Central Bank (ECB) is set to announce its monetary policy decision on Thursday. Christine Lagarde and her colleagues are expected to keep interest rates unchanged and maintain a cautious approach to future monetary policy.
In the backdrop, corporate earnings reports are influencing market sentiment. The Nasdaq Composite saw significant declines following mixed results from major tech companies. The S&P 500 traded in the red, while the Dow Jones Industrial Average posted modest gains for the day. Ultimately, government bond yields rose, with the 10-year Treasury bond yield adding 7 basis points, fluctuating around 4.91%.
Technical analysis on the daily chart for XAU/USD supports further upward movement, even though the pair is still trading below the monthly peak of $1,997.17. XAU/USD maintains strong performance across all its moving averages, with the 20-day Simple Moving Average (SMA) providing solid support. Additionally, technical indicators continue to trend upwards, albeit with uneven strength.
On the 4-hour chart, XAU/USD is neutral but tilting towards a price increase. The precious metal remains above the flat 20-period SMA, while the 100-period SMA continues to trend lower. Finally, technical indicators are positioned around their midlines, showing signs of a downward turn. Those speculating on a price rise will gain confidence upon breaking the mentioned monthly high.
Support Levels: $1,964.30, $1,953.30, $1,936.60
Resistance Levels: $1,997.20, $2,008.10, $2,011.95
Meanwhile, XAU/USD gained ground on Wednesday, trading around $1,982 per troy ounce. The financial markets are closely monitoring Wall Street's earnings reports while evaluating economic prospects ahead of key events scheduled for Thursday.
On one hand, the financial market anticipates significant economic growth in the US, with year-on-year growth projected to be around 2%, based on market forecasts. Such an optimistic figure may raise concerns about higher interest rates, but it could also imply that the Federal Reserve (Fed) might maintain higher rates for an extended period, as Chairman Jerome Powell has mentioned the need for sustained growth to bring inflation back to the target of 2%.
On the other hand, the European Central Bank (ECB) is set to announce its monetary policy decision on Thursday. Christine Lagarde and her colleagues are expected to keep interest rates unchanged and maintain a cautious approach to future monetary policy.
In the backdrop, corporate earnings reports are influencing market sentiment. The Nasdaq Composite saw significant declines following mixed results from major tech companies. The S&P 500 traded in the red, while the Dow Jones Industrial Average posted modest gains for the day. Ultimately, government bond yields rose, with the 10-year Treasury bond yield adding 7 basis points, fluctuating around 4.91%.
Comment:
Trade active
Comment:
Everything is fine , The 4h frame still works fine
Comment:
The analysis is on trend!
Trade active:
Everything is fine
