Gold Prices Points:
- Spot Gold prices surged on Monday due to increasing expectations of a Federal Reserve (Fed) rate cut in June.
- XAU/USD breached its all-time high of $2,100.00.
- Traders are betting on a weaker US economic outlook, leading to XAU/USD purchases.
Fed Rate Cut Expectations Drive Gold Prices
Spot Gold prices witnessed a significant surge on Monday, reaching $2,100.00. The uptick stems from growing market expectations of a rate cut by the Federal Reserve. Recent US economic data, which has been mediocre or softer, has fueled these anticipations.
Risk-Taking Behavior Fuels Gold Demand
Ahead of this week's crucial US Nonfarm Payrolls (NFP) report, markets are adopting a risk-taking stance. Traders anticipate a weaker labor figure to bolster the case for a rate cut. Additionally, a perception of a weakening US economy is driving XAU/USD buying.
US Economic Data to Shape Market Outlook
The upcoming US economic data will provide further insights into the market outlook. Tuesday's ISM Services Purchasing Managers Index for February is forecasted to drop from 53.4 to 53.0. The ADP Employment Change for February, a preview of Friday's NFP, will also be closely watched. Wednesday's testimony by Fed Chairman Jerome Powell will further clarify the central bank's monetary policy stance.
XAU/USD Technical Analysis
Spot Gold is extending its gains from last Friday, surpassing $2,100.00. XAU/USD is up over 1% on Monday, with intraday bids pushing towards the 200-hour Simple Moving Average (SMA) at $2,038.89.
Daily candlesticks are approaching the all-time high of $2,144.48 set in December. XAU/USD has ascended approximately 4% from last week's low bids near $2,025.00.
Key Market Indicators
| Overview | Value |
|---|---|
| Today's Last Price | 2102.47 |
| Today's Daily Change | 18.90 |
| Today's Daily Change % | 0.91 |
| Today's Daily Open | 2083.57 |
| Trends | Value |
|---|---|
| Daily SMA20 | 2026.34 |
| Daily SMA50 | 2033.89 |
| Daily SMA100 | 2014.23 |
| Daily SMA200 | 1968.76 |
| Levels | Value |
|---|---|
| Previous Daily High | 2088.39 |
| Previous Daily Low | 2039.12 |
| Previous Weekly High | 2088.39 |
| Previous Weekly Low | 2024.57 |
| Daily Fibonacci 38.2% | 2069.57 |
| Daily Fibonacci 61.8% | 2057.94 |
| Daily Pivot Point S1 | 2052.33 |
| Daily Pivot Point S2 | 2021.09 |
| Daily Pivot Point S3 | 2003.06 |
| Daily Pivot Point R1 | 2101.6 |
| Daily Pivot Point R2 | 2119.63 |
| Daily Pivot Point R3 | 2150.87 |
Market Outlook
The rise in Spot Gold prices reflects the market's anticipation of a more dovish stance from the Fed. However, the release of key economic data this week, particularly the NFP report, will significantly influence market sentiment and the price trajectory of XAU/USD.