XAUU price today: continuously setting new records around 2,200
Hello everyone, let's discuss and strategize for the new week!
Overall, in the past week, we have witnessed gold continuously outperforming, reaching new daily highs and reaching its all-time high near $2200. XAUUSD is currently trading at a new high of $2179 after hitting $2195, marking a 0.88% increase in a day. So, what are the reasons and factors that have driven this rise in the price of gold (XAUUSD)?
In terms of impacting factors: the latest data showing an increase in the unemployment rate in the US has raised expectations that the Federal Reserve may soon start changing its monetary policy.
Regarding the forecasted impact after this news: the underlying factors driving the gold price rally are expectations that the Fed will still cut interest rates by the end of this year and the weakening of the US dollar.
The US Dollar Index has declined, making gold cheaper for foreign buyers, while the yield on 10-year US Treasury bonds has dropped to a one-month low.
Traders have increased their bets with a 30% likelihood that the Fed may begin interest rate cuts in May after the employment report, although June is still the most likely scenario with a forecasted probability of 73%.
Independent precious metal trader Tai Wong in New York believes that, in general, the price of gold will continue to trend higher. However, after the recent significant increase, this precious metal may need to consolidate in the short term.
Regarding the new outlook for XAUUSD: On the daily chart, as I mentioned earlier, the resistance level around $2,200 remains a strong resistance zone for gold at this time. Breaking above this level will lead to a significant price increase, while maintaining this level will result in a stable price consolidation at this level.
Overall, in the past week, we have witnessed gold continuously outperforming, reaching new daily highs and reaching its all-time high near $2200. XAUUSD is currently trading at a new high of $2179 after hitting $2195, marking a 0.88% increase in a day. So, what are the reasons and factors that have driven this rise in the price of gold (XAUUSD)?
In terms of impacting factors: the latest data showing an increase in the unemployment rate in the US has raised expectations that the Federal Reserve may soon start changing its monetary policy.
Regarding the forecasted impact after this news: the underlying factors driving the gold price rally are expectations that the Fed will still cut interest rates by the end of this year and the weakening of the US dollar.
The US Dollar Index has declined, making gold cheaper for foreign buyers, while the yield on 10-year US Treasury bonds has dropped to a one-month low.
Traders have increased their bets with a 30% likelihood that the Fed may begin interest rate cuts in May after the employment report, although June is still the most likely scenario with a forecasted probability of 73%.
Independent precious metal trader Tai Wong in New York believes that, in general, the price of gold will continue to trend higher. However, after the recent significant increase, this precious metal may need to consolidate in the short term.
Regarding the new outlook for XAUUSD: On the daily chart, as I mentioned earlier, the resistance level around $2,200 remains a strong resistance zone for gold at this time. Breaking above this level will lead to a significant price increase, while maintaining this level will result in a stable price consolidation at this level.
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