Article by: ETO Markets

During early European trading hours on Thursday, the price of gold (XAU/USD) surged to a two-week high, reclaiming key resistance at the 50-day simple moving average. Persistent weak data has dispelled investor concerns over hawkish Fed comments, sparking speculation of two rate cuts in 2024. This has resulted in a rebound of the US dollar alongside a significant rise in precious metals prices. The decline in US Treasury yields has also bolstered the upward momentum of gold prices. Traders will further glean clues from US employment data and the PMI (Purchasing Managers' Index).

XAU/USD has consistently breached the 20-day simple moving average at $ … and the 50-day simple moving average at $…, and the relative strength index (RSI) has also reached 52, signalling the start of an uptrend. Gold buyers have taken initiative and are preparing to initiate a new bull market, pushing gold prices towards the $… range, then targeting the $… level, ultimately aiming to set new historical highs. Sellers of gold now aim to suppress prices below $… to potentially halt the bullish momentum.