- Gold extends its rally for the fourth consecutive day on Thursday as traders seek safe-haven assets.
- Disappointing Nvidia earnings, dovish remarks from Fed officials hinting at potential rate cuts, and escalating Russian nuclear threats drive market sentiment.
- XAU/USD charts a bullish Three White Soldiers candlestick pattern, signaling continued upward momentum.
Gold (XAU/USD) Rises for Fourth Straight Day, Reaches $2,660s Amid Risk-Off Sentiment
Gold continues its upward momentum on Thursday, climbing into the $2,660 range during the European session. Investors are flocking to safe-haven assets as broader market risk sentiment sours following underwhelming Nvidia earnings.
The mildly weaker US Dollar (USD) further supports Gold's advance, as the precious metal, predominantly priced in USD, becomes more attractive to non-USD buyers. Geopolitical tensions, particularly Russia's recent lowering of the threshold for nuclear weapon use, have also driven haven flows into Gold.
However, Gold's gains face headwinds from rising competition with Bitcoin (BTC). A report from Bloomberg highlights significant inflows into Bitcoin Exchange Traded Funds (ETFs) in November, coinciding with notable outflows from Gold ETFs. This suggests a shift in investor preference toward Bitcoin over Gold.
Gold Extends Gains After Nvidia Earnings Trigger Market Decline
Gold pushes higher on Thursday following Nvidia's Q3 earnings report, which led to a broader market downturn. Despite Nvidia exceeding earnings expectations, its stock dropped 3.0% as the results fell short of lofty investor expectations. According to Forbes, this failure to meet "sky-high expectations for the AI colossus" triggered a risk-off sentiment, benefiting Gold and other safe-haven assets.
The US Dollar's pullback on Thursday also aids Gold's rise, following dovish comments from Federal Reserve (Fed) officials advocating for interest rate cuts amid cooling inflation.
New York Fed President John Williams expressed optimism about inflation continuing to decline and interest rates falling further during an interview with Barron's. Similarly, Boston Fed President Susan Collins emphasized the need for additional rate cuts while urging caution in policymaking.
Technical Analysis: XAU/USD Breaks Key Levels, Forms Bullish Pattern
Gold has risen for a fourth consecutive day, forming a bullish “Three White Soldiers” candlestick pattern on the daily chart. This pattern signals continued upward momentum from last week’s lows.
XAU/USD Daily Chart:
The precious metal has decisively broken above a long-term trendline and is challenging the 50-day Simple Moving Average (SMA) at $2,661, a key resistance level. These developments suggest a bullish short-term trend, with the next upside target at $2,686—the September 26 high.
While Gold remains in a medium-term downtrend, the long-term uptrend strengthens the bullish outlook. The near-term technical landscape favors continued gains, but medium-term risks could temper the upward trajectory.
