This week, gold's rally will come to an initial halt.
Bond yields are beginning to rise after hitting their lowest points.
On Wednesday, gold tried and failed to break above $2,760.
Following a strong three-day rally that saw gains of more than 2.0%, investors are beginning to book some gains in gold's price (XAU/USD), which is $2,747 at the time of writing. As the US economic calendar prepares for additional data releases on Friday, traders are lowering their exposure to bullion. Markets, meanwhile, are wary of what US President Donald Trump will say when he speaks at the World Economic Forum (WEF) in Davos.
Due to the recent data vacuum, gold has been able to rise without significant concern. With the release of the January Kansas Fed Manufacturing Activity Survey ahead of Friday's S&P Global Purchase Managers Index (PMI) data, that sentiment may begin to shift.
Market movers for the daily digest: US data arrives
According to Bloomberg sources, Barrick Gold is considering selling its 50% share in Chile's Zaldivar Copper mine in order to concentrate on larger-scale operations and simplify its holdings.
The January Kansas Fed Manufacturing Activity Index is scheduled to be released at 16:00 GMT. With the previous number in contraction at -5, there is no forecast available.
In Davos, President Donald Trump will give a remote speech.
The US 10-year benchmark rate is currently trading at 4.619%, up from its poor performance earlier this week at 4.528%, bringing US yields off their lowest points for the week. It still has a long way to go before returning to last week's more than one-year high of 4.807%.
Technical Analysis: Information that could disrupt the rally
The US economic calendar may have contributed to the gold price's Thursday stalling of its rally. Since US President Donald Trump's inauguration on Monday, the US economic calendar has been incredibly empty for a very rare few days. This rally was perfect for traders because of the gap in economic data. The precious metal may see a correction on Thursday, even though its significance is beginning to increase.
Gold's price may rebound to $2,721, a sort of double top in November and December that was broken on Tuesday, if profit-taking continues. A second nearby support that comes into focus is $2,709 (low of October 23, 2024). Look for a full-swing sell-off and a plunge back to $2,680 if either of the aforementioned levels breaks.
On the other hand, gold is currently approaching its highest point ever, $2,790, which is still more than 1.4% above its current level. A new all-time high will emerge once it surpasses that. Although some strategists and analysts have scheduled calls for $3,000, $2,800 appears to be a solid place to start as the next upward resistance.
XAUUSD(GOLD)
Bond yields are beginning to rise after hitting their lowest points.
On Wednesday, gold tried and failed to break above $2,760.
Following a strong three-day rally that saw gains of more than 2.0%, investors are beginning to book some gains in gold's price (XAU/USD), which is $2,747 at the time of writing. As the US economic calendar prepares for additional data releases on Friday, traders are lowering their exposure to bullion. Markets, meanwhile, are wary of what US President Donald Trump will say when he speaks at the World Economic Forum (WEF) in Davos.
Due to the recent data vacuum, gold has been able to rise without significant concern. With the release of the January Kansas Fed Manufacturing Activity Survey ahead of Friday's S&P Global Purchase Managers Index (PMI) data, that sentiment may begin to shift.
Market movers for the daily digest: US data arrives
According to Bloomberg sources, Barrick Gold is considering selling its 50% share in Chile's Zaldivar Copper mine in order to concentrate on larger-scale operations and simplify its holdings.
The January Kansas Fed Manufacturing Activity Index is scheduled to be released at 16:00 GMT. With the previous number in contraction at -5, there is no forecast available.
In Davos, President Donald Trump will give a remote speech.
The US 10-year benchmark rate is currently trading at 4.619%, up from its poor performance earlier this week at 4.528%, bringing US yields off their lowest points for the week. It still has a long way to go before returning to last week's more than one-year high of 4.807%.
Technical Analysis: Information that could disrupt the rally
The US economic calendar may have contributed to the gold price's Thursday stalling of its rally. Since US President Donald Trump's inauguration on Monday, the US economic calendar has been incredibly empty for a very rare few days. This rally was perfect for traders because of the gap in economic data. The precious metal may see a correction on Thursday, even though its significance is beginning to increase.
Gold's price may rebound to $2,721, a sort of double top in November and December that was broken on Tuesday, if profit-taking continues. A second nearby support that comes into focus is $2,709 (low of October 23, 2024). Look for a full-swing sell-off and a plunge back to $2,680 if either of the aforementioned levels breaks.
On the other hand, gold is currently approaching its highest point ever, $2,790, which is still more than 1.4% above its current level. A new all-time high will emerge once it surpasses that. Although some strategists and analysts have scheduled calls for $3,000, $2,800 appears to be a solid place to start as the next upward resistance.
XAUUSD(GOLD)
