GOLD skyrocketed, the world reached a new peak

The world gold spot price is around 2,233 USD/ounce, a spike of 42 USD/ounce compared to the transaction at the same time yesterday morning. Closing last night's session, the world gold spot price in the US market stood at 2,233 USD/ounce, a sharp increase of more than 38 USD/ounce, equivalent to an increase of 1.74% compared to the previous session's close.

Yesterday, the global financial market received more positive economic information in the US, the USD increased well but the price of gold - a capital security asset still increased too strongly to an unprecedented high.

Specifically, the US announced that its gross domestic product (GDP) in the fourth quarter of 2023 increased by 3.4% over the same period, higher than the previous forecast of 3.2%. First-time applications for unemployment benefits in the US last week were at 210,000 applications, lower than the 212,000 applications forecast previously and last week.

PCE price is an index measuring the price change of consumer goods and services exchanged in the US economy in the fourth quarter of 2023, increasing by 1.8% over the same period, much lower than the level achieved in the previous quarter. 2.6%.

Thus, closing data on US gross domestic product increased compared to the same period last year, initial applications for unemployment benefits decreased, showing that the US economy is recovering positively. The decrease in PCE prices shows that the price of personal consumption goods has decreased, which will contribute to reducing inflation in the US.

According to market rules, the USD enjoyed a very good increase in the session last night - early this morning. Specifically, the Dollar-Index - measuring the strength of the greenback compared to 6 major currencies, increased quite well by 0.28% to 104,217 points.

Normally, positive economic information and the USD will cause gold prices to drop sharply. However, investors believe that when factors related to inflation decline deeply, such as PCE, it will promote the process of reducing interest rates by the US Federal Reserve (Fed) soon.

Tonight, the US will announce the PCE price index for February. Current forecasts are that all indicators of PCE in February are higher than last month. In particular, Fed Chairman Jerome Powell will give a speech. Investors will look for more clues about when to cut interest rates, as well as the health of the US economy from Mr. Jerome Powell.

Currently, 71% of market forecasts are that the Fed will cut interest rates for the first time in a series of high interest rate days in June this year. Experts say that if the PCE price index falls, it could be gold. prices will increase sharply. Because it is predicted that the Fed will cut interest rates soon to support the economy. If PCE increases, the Fed may delay cutting interest rates after June as forecast.

Comment:

🟢Fed's Powell: The fact that the United States is growing strongly, and the labor market is strong, gives us the opportunity to be more confident about inflation until interest rates are lowered.

Comment:

Gold kicked off the first quarter of 2024 with solid gains, extending the positive momentum established in the latter part of 2023. During this upturn, XAU/USD soared to new all-time highs, decisively breaking past the $2,150 mark, and eventually reaching a peak of $2,222. Although prices have since experienced a slight retreat, the precious metal remains near record zone at the time of writing.

Comment:

Comment:

According to technical analysis, the impact of the PCE index and core PCE on the currency can go in two directions: Increasing CPI can lead to increased interest rates and an increase in the local currency; On the other hand, if the economy is in recession, an increase in CPI can lead to a deeper recession and a devaluation of the domestic currency.

Comment:

📌According to technical analysis, gold prices are still in an uptrend and may reach $2,300/oz. If economic data is negative, prices may face profit-taking pressure with support levels at $2,150-2,100-2,080/oz. Trading plan: sell at $2,300 and buy at $2,150.

Comment:

After the holiday, world gold prices continued to increase rapidly. The main reason may be that central banks around the world continue to buy physical gold. Rising demand has directly impacted gold prices, pushing prices to record highs.

Comment:

Precious metals markets have benefited from expectations of interest rate cuts by the Fed. In addition to investors buying to seek profits, the need for safe havens increased sharply at central banks.

The price of substituted gold may increase to 2,300 USD/ounce in the second quarter of this year, when the demand for gold to shelter cash flow continues to increase due to geopolitical tensions.

Comment:

Canada's March S&P global manufacturing PMI was higher than February

+++ Canada's March S&P global manufacturing PMI: 49.8, just below 50

+++ Previous: 49.7

Comment:

Wait until the morning Gold hour drops to 39-40 then it's good to get in. With a low back like this, it's not easy to dodge sweeps.

DXY and Gold in the same phase often sweep randomly

Comment:

Gold rises above $2,270 as USD weakens slightly following the release of February JOLTS job openings data as expected