Gold Surges Past $1,980 as US GDP Takes Center Stage"
Gold continues its upward trajectory in early Asian trading on Thursday. Despite higher US Treasury bond yields, the precious metal maintains its momentum above $1,980 due to risk aversion. Increasing geopolitical tensions in the Middle East could boost safe-haven assets like XAU/USD. Technical indicators on the daily XAU/USD chart are pointing upwards, although the pair is still trading below the monthly peak of $1,997.17. XAU/USD is trading comfortably above all its moving averages, with the 20-day Simple Moving Average (SMA) providing support below longer-term moving averages. However, the technical indicators remain in overbought territory with uneven strength.
XAU/USD is ranging from neutral to bullish on the 4-hour chart. The metal holds above the flat SMA 20, while the SMA 100 continues its downward trend below the current level. Additionally, technical indicators are hovering around the middle but are turning bearish. Bulls gain confidence upon surpassing this month's high.
Support Levels: $1,964.30, $1,953.30, $1,936.60
Resistance Levels: $1,997.20, $2,008.10, $2,011.95
On Wednesday, XAU/USD traded around $1,982 per troy ounce. Financial markets kept an eye on Wall Street's earnings reports while assessing economic prospects ahead of significant events on Thursday.
On one hand, financial markets anticipate substantial economic growth in the US from July to September, with an annual rate of 4.2%, according to market forecasts. While this optimistic figure might dispel concerns about higher interest rates, it could also imply that the Federal Reserve (Fed) will maintain higher interest rates for a longer period. Fed Chair Jerome Powell has stated that the central bank needs to grow below trend to bring inflation back to the 2% target.
On the other hand, the European Central Bank (ECB) will announce its monetary policy decision on Thursday. Many expect ECB President Christine Lagarde and her colleagues to maintain interest rates and adopt a cautious approach to future monetary policies.
Meanwhile, earnings season is impacting market sentiment. The Nasdaq Composite index experienced a sharp decline following mixed results from major tech players. S&P500 also traded in the red, while the Dow Jones Industrial Average had modest gains for the day. Additionally, government bond yields increased, with the 10-year Treasury bond rising by 7 basis points to hover around 4.91%.
XAU/USD is ranging from neutral to bullish on the 4-hour chart. The metal holds above the flat SMA 20, while the SMA 100 continues its downward trend below the current level. Additionally, technical indicators are hovering around the middle but are turning bearish. Bulls gain confidence upon surpassing this month's high.
Support Levels: $1,964.30, $1,953.30, $1,936.60
Resistance Levels: $1,997.20, $2,008.10, $2,011.95
On Wednesday, XAU/USD traded around $1,982 per troy ounce. Financial markets kept an eye on Wall Street's earnings reports while assessing economic prospects ahead of significant events on Thursday.
On one hand, financial markets anticipate substantial economic growth in the US from July to September, with an annual rate of 4.2%, according to market forecasts. While this optimistic figure might dispel concerns about higher interest rates, it could also imply that the Federal Reserve (Fed) will maintain higher interest rates for a longer period. Fed Chair Jerome Powell has stated that the central bank needs to grow below trend to bring inflation back to the 2% target.
On the other hand, the European Central Bank (ECB) will announce its monetary policy decision on Thursday. Many expect ECB President Christine Lagarde and her colleagues to maintain interest rates and adopt a cautious approach to future monetary policies.
Meanwhile, earnings season is impacting market sentiment. The Nasdaq Composite index experienced a sharp decline following mixed results from major tech players. S&P500 also traded in the red, while the Dow Jones Industrial Average had modest gains for the day. Additionally, government bond yields increased, with the 10-year Treasury bond rising by 7 basis points to hover around 4.91%.
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