The Gold Spot Price (XAUUSD) is experiencing a significant increase due to a decline in US Retail Sales and Industrial Production. Additionally, cooling inflation is encouraging the Federal Reserve and Central Banks worldwide to put an end to the aggressive monetary policy tightening, resulting in a higher demand for gold.
Weakening macroeconomic indicators have pushed various countries towards the possibility of a recession, prompting investors to seek safe-haven assets like gold. US Retail Sales dropped from the expected 0.5% to 0.2%, and Industrial Production year-to-year decreased from 0% to -0.4%, in contrast to the predicted rise of 1.1%. Is it gold’s time to shine amidst growing uncertainty?
The Gold Spot Price has surged, establishing resistance at $1979.07 per ounce. With weakening macroeconomic factors boosting demand for the safe-haven commodity, the $2021.12 per ounce major resistance may be a point of interest towards further upside opportunities if a breakthrough of the current price level is sustained.
However, the $1979.07 per ounce resistance could hold, which may encourage the spot price to retest the $1960.29 per ounce support at the 23.60% Fibonacci Level, possibly prompting further downside momentum if the price level intersects with the 50-day moving average.
The Gold Spot Price has surged due to weakening macroeconomic factors and slowing inflation, which may encourage the price action to retest the $2021.12 major resistance. However, a surprise hike from the Federal Reserve may encourage a pullback towards the $1960.29 per ounce support, which may pave the way towards further downside opportunities.
Sources: TradingView, Reuters
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