Gold price soars to new All-Time high (XAU/USD) has surged to an unprecedented high, surpassing $2,490 during the US trading session on Friday. This spike comes as investors anticipate that the Federal Reserve (Fed) will reduce interest rates in September, despite the release of robust Retail Sales data on Thursday.
Gold’s Record-Breaking Surge
Gold prices have hit a new record high, breaking through previous resistance levels. Earlier, the metal had faced resistance around the $2,470 mark, which had been a challenging level throughout the week.
The recent rise was initially tempered by better-than-expected US Retail Sales data for July. This data revealed a 1.0% month-over-month increase, significantly surpassing economists’ expectations of 0.3%. This improvement also marked a rebound from June’s revised 0.2% decline.
Impact of Strong US Economic Data
Following the release of stronger US macroeconomic data, gold bulls took a brief pause. The data raised doubts about the likelihood of a US recession and strengthened the US Dollar (USD), the currency in which gold is priced. Consequently, investor expectations for future interest rate adjustments have shifted.
Technical Analysis: Gold’s Price Movement
Gold price soars to new All-Time high broken out of its trading range that persisted since July. It is now poised for further gains, potentially reaching a new all-time high of $2,550. This projection is based on the 0.618 Fibonacci ratio of the range’s height.
Conclusion
Gold’s recent price surge highlights the ongoing impact of anticipated Fed rate cuts and resilient US economic indicators. As the metal continues to break records, investors should closely monitor economic data and technical signals for future trends.
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