We use cookies to offer a better browsing experience, analyze site traffic, personalize content, and serve targeted advertisements. By clicking accept, you consent to our privacy policy & use of cookies. (Privacy Policy)

Gold Price Defies Upbeat US Data, Sets Sight On New ATH

Gold price hit new all-time high at the futures market on Thursday, propelled by safe haven appetite.  According to data from COMEX market, the yellow metal reached an intra-day high of $2234 per ounce, before settling lower at $2231 at the time of writing. Meanwhile, spot gold was marginally below its ATH, as it traded at $2213, after gaining 0.86% in intra-day trading.

The appetite for gold has seen traders ignore Wednesday’s hawkish comments by Fed Governor Christopher Waller. Traders have seemingly numbed themselves against the Fed’s interest rate narrative, opting to react to economic data instead. Waller stated that the Fed was not in a hurry to cut interest rates, until there’s sufficient data to prove stability. Nonetheless, gold price’s current maneuver signals that the market still expects at least three in 2024, as announced during the March Fed interest rate announcement.

The US economy printed out softer economic data in March, but the US dollar strengthened against DXY currencies largely due to weaker data in those economies.  However, there’s a general uncertainty regarding the global economic trajectory in 2024, with record number of national elections, as well as the Israel-Hamas and Russia-Ukraine wars. In addition, China’s economy still grapples with underperformance whose ripple effects will certainly be felt across the board. This combination of geopolitical and economic factors has seen many central banks enter the gold market to bolster their vaults.

Gold ignores US data

In intra-day trading, the dollar has support from the latest US economic data. The US economy grew at 3.4% in the fourth quarter of 2023, beating the forecast figure of 3.2%. In addition, Initial Jobless Claims declined by 2,000 to 210 k for the week ending March 21st. Meanwhile, the previous reading was revised upwards from 210 k to 212 k. The Chicago PMI data for March is in the barrel, and that could bring new impetus to XAUUSD.

Technical analysis

Spot market gold has a strong upward momentum, but will need to stay above the 2193 pivot mark to sustain the push. With the buyers in control, the resistance at 2225, could be broken in extension, creating momentum to test 2235. Alternatively, a break below 2193 will favour the sellers. The seller-controlled market will likely break the support at 2185 in extension. The move will invalidate the upside narrative and potentially push the support lower to 2180.