- Gold attracts investors as it hits a fresh all-time high of $2,877 on Wednesday.
- Equities decline as Asian markets reopen after the Chinese New Year holidays.
- Gold extends its rally into a five-day winning streak.
Gold (XAU/USD) continues its bullish momentum, rising for a fifth straight session on Wednesday and accumulating more than 2.5% in gains this week. The precious metal surged to a new record high near $2,877 as investors flocked to bullion amid economic uncertainty. Softer U.S. economic data, increasing the likelihood of a Federal Reserve (Fed) rate cut, and diminishing tariff concerns are fueling gold's ascent.
Looking ahead, upcoming economic data could provide further tailwinds for gold's rally. On Wednesday, the U.S. Purchasing Managers Index (PMI) for January is set to be released. A weaker-than-expected PMI reading could trigger another push to fresh all-time highs.
Daily Market Movers: Gold Shines Amid Market Shifts
- Investors are shifting funds into gold while retreating from tech stocks, seeking refuge from fresh lows in U.S. yields as inflation worries ease, according to Bloomberg.
- At 14:45 GMT, S&P Global will publish the final January PMI reading, with expectations for the ISM Services PMI to hold steady at 52.8.
- At 15:00 GMT, the Institute for Supply Management (ISM) will release its PMI data for the broader services sector:
- The PMI is projected to edge up to 54.3 from 54.1 in December.
- The Prices Paid component, previously at 64.4, has no forecasted change.
- The CME FedWatch Tool indicates an 83.5% probability that the Fed will keep rates unchanged at its March 19 meeting, with a 16.5% chance of a 25-basis-point rate cut.
Technical Analysis: Gold Finds Support as Bullion Rally Continues
Gold's upward momentum remains intact, and with China returning to the markets after the Chinese New Year holidays, additional buying pressure is expected. As the rally enters its fifth day, any short-term dips or pullbacks are likely to attract buying interest.
With gold now in uncharted territory, intraday Pivot Point levels are becoming key reference points:
Support Levels:
- Pivot Point: $2,831 (nearest support)
- S1: $2,818 (minor support)
- S2: $2,793 (more significant, aligning with the previous high of October 31, 2024, at $2,790)
Resistance Levels:
- R2: $2,869 (next resistance)
- Psychological levels: $2,880 and $2,900
- Some analysts and strategists are already eyeing $3,000 as the next major milestone.
With strong momentum and favorable economic conditions, gold’s rally shows no signs of slowing down.
