Who projected 2569 2552 2542 XAUUSD Gold All Time High Price in 2024: Why XAUUSD Price is rising in September 2024
I had projected $2552/2569 on 12 August 2024:
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WHY XAUUSD Price is rising?
- Rising bets for a larger interest rate cut by the Federal Reserve, along with geopolitical risks, lift the Gold price to a fresh all-time high on Friday and confirm a bullish breakout through a multi-week-old trading range.
- The US Bureau of Labor Statistics reported on Thursday that the annual headline Producer Price Index (PPI) rose 1.7% against estimates of 1.8% and the previous month’s reading was revised down to 2.1% from 2.2%.
- Adding to this, the core PPI, which excludes volatile food and energy prices, came in at 2.4% YoY, also missing expectations for a reading of 2.5% and further pointing to signs of easing inflationary pressures in the US.
- Separately, data published by the US Department of Labor (DoL) showed that the number of individuals who applied for unemployment insurance benefits for the first time rose to 230K in the week ending September 7.
- According to the CME Group’s Fed Watch Tool, market players are now pricing in over a 40% chance that the US central bank will lower borrowing costs by 50-basis points at the end of a two-day meeting next Wednesday.
- Israel intensified airstrikes on Iranian-linked targets in Syria, while Hamas and Hezbollah pounded northern Israel on September 11 in one of the largest aerial attacks, fueling concerns over a wider conflict in the Middle East.
- Russian President Vladimir Putin warned on Friday that he would regard an agreement to allow Ukraine to strike targets inside Russia with Western-supplied missiles as tantamount to NATO directly entering the war.
- Investors now look forward to the release of the Preliminary Michigan US Consumer Sentiment Index to grab short-term opportunities around the XAU/USD, which remains on track to register strong weekly gains.
Summary Points: Reason for + XAUUSD price:
Bearish USD
(-) US Yields
Rising bets for a larger Fed rate cut
Geopolitical risks
Gold price is sitting at the highest level on record near đș$2,569, with buyers contemplating the next move amid sustained weakness in the đ»US Dollar (USD) and the đ»US Treasury bond yields.
Gold price extended the early bounce on Thursday, as the tide turned in favor of buyers following the release of the US Producers Price Index (PPI) and Jobless Claims data, which reinforced bets of an outsized interest rate cut by the US Federal Reserve (Fed) interest rate cut next week.
The US Dollar snapped its recovery mode on dovish Fed expectations, tracking the sell-off in the US Treasury bond yields. The USD also bore the brunt of the resurgent demand for the Euro after the European Central Bank (ECB) on Thursday cut rates but President Christine Lagarde poured cold water on the expectations for another cut next month. The Hawkish cut by the ECB sent đșEUR/USD higher at the expense of the đ»Greenback.
These factors added to the Gold price rebound, driving the bright metal to a fresh lifetime high of $2552/2555/2560 on Thursday.
In Fridayâs trading so far, Gold price witnessed a fresh leg higher and renewed record highs at $2,569, as Asian traders hit their desks and reacted to the overnight optimism surrounding the renewed dovish bets surrounding the Fed announcements next week.
Monday, September 16, 2024
All Day Holiday Japan – Respect for the Aged Day
All Day Holiday China – Mid-Autumn Festival
All Day Holiday China – Mid-Autumn Festival
đ Stay Alert: High volatility/price trap might be faced on Monday due to thinner volumes.
