Gold Daily | Prices Surge on Fed Rate Cut; Market Eyes U.S. Jobless Data for Further Cues

【Latest Gold Price and Recent Trends】

Gold prices surged over $20 to around $2,585, buoyed by a 50 basis point Fed rate cut, which initially pushed prices to an all-time high of $2,599.92. Focus now is on U.S. jobless data.

【Technical Analysis】

Gold shows resilience below the pivot point of $2,571.32, with support at $2,560.25 and resistance at $2,598.91. The 50-day EMA at $2,552.36 provides solid support, maintaining a bullish trend.

【Market Sentiment and Economic Background】

The Federal Reserve's significant rate cut amid easing inflation has weakened the dollar, enhancing gold's appeal as a non-yield asset. Market expects further easing in 2024, with geopolitical tensions in the Middle East also boosting safe-haven demand.

【Analyst Opinions】

Analysts suggest gold could reach $2,640-$2,700 this year, supported by weaker economic data. With tensions escalating in the Middle East, traditional safe-haven assets like gold are favored. The Fed's rate cut decision indicates confidence in achieving a 2% inflation target, despite political criticisms. Overall, while the Fed's rate cut has provided a boost to gold, the market remains attentive to upcoming U.S. economic data for further guidance.