- XAU/USD climbs back over $2,060.00 on Friday.
- A miss on US ISM PMI numbers are fueling investor appetite.
- Hopes for Fed rate cuts mount with each data print that suggests easing inflation.
Gold experienced a surge last Friday following a disappointment in the US ISM Manufacturing Purchasing Manager Index (PMI), reigniting optimism about the Federal Reserve (Fed) potentially implementing rate cuts sooner rather than later.
Unexpectedly, the US ISM Manufacturing PMI for February declined on Friday, registering at 47.8, contrary to the anticipated rise to 49.5 compared to the previous month’s 49.1.
In the most recent Monetary Policy Report, the Fed expressed cautious optimism about gaining control over inflation. However, they acknowledged persistent challenges in a tightly contested labor market and stubborn inflation in shelter and rent prices, attributed to housing supply constraints.
Technical outlook
On Friday, Spot Gold witnessed a robust rally, surpassing the $2,060.00 mark in the early US session and reaching $2,080.00 as of the current moment. Short-term bids for XAU/USD saw a technical rebound around the 200-hour Simple Moving Average (SMA) located near $2,030.00.
Looking at the daily candlesticks for XAU/USD, there’s anticipation of a breach of the $2,100.00 price level. Beyond that, the closest technical resistance lies around the all-time highs near $2,144.48, established in early December.
