Bulls continue to shine for spot gold - Attention remains on key U.S. data
The price of the yellow precious metal soared for the sixth straight day, reaching a record high despite the strength of the U.S. Dollar.
This was driven by indications of robust economic performance in the U.S., which tempered hopes for an imminent interest rate cut after the release of U.S. manufacturing data.
The unexpected surge in gold prices coincided with the rise in the U.S. Dollar as expectations for earlier rate cuts waned.
The U.S. ISM manufacturing purchasing managers' index climbed to 50.3 from 47.8, signalling manufacturing expansion for the first time since September 2022.
The U.S. Dollar index reached 105.00.
Additionally, the Fed's preferred inflation gauge, the personal consumption expenditures (PCE) price index, rose 0.3% in February, in line with the forecasted increase of 0.4% and matching the previous release at 0.5%.
Fed Chair Jerome Powell's remarks on Friday suggested satisfaction with the latest U.S. inflation data.
Attention now turns to Wednesday's non-manufacturing index.
The week's highlight is Friday's release of the U.S. Non-Farm Payrolls report, which is crucial for shaping expectations regarding potential Fed rate cuts in June.
Based on technical assessment, the Relative Strength Index (RSI) 3-day 'lookback' indicator is positive, overbought, with bearish divergence forming, while the Moving Average Convergence Divergence (MACD) is positive.
Additionally, the ADX (trend) indicator supports an overheating bull trend.
With a neutral outlook, since the clearance of the $2,200-14 level, traders should stay vigilant and adapt strategies accordingly to their risk management, as bearish divergence could indicate a pullback (profit-taking).
Daily Chart Spot Gold
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