- Spot Gold prices are on the rise on Monday.
- Markets are expecting Fed rate cuts after middling data.
- XAU/USD pushes back into all-time high territory.
XAU/USD rose above $2,100.00 on Monday as markets lean into Spot Gold bids. Investors are ramping up bets of a June rate cut from the Federal Reserve (Fed) after US economic data middled to softened last week.
Markets are jostling into risk-taking position ahead of this week’s key US Nonfarm Payrolls (NFP) report coming up on Friday. Traders will be looking for a softer labor figure to add to the rate cut puzzle, and broad-market hopes for a weakening US economic outlook are crystallizing into XAU/USD buying.
This week also sees the US ADP Employment Change for February as a labor data preview of Friday’s NFP, albeit one with a shaky connection in recent history. Fed Chairman Jerome Powell will also be speaking on Wednesday, testifying before the Financial Services Committee about the Semi-Annual Monetary Policy Report beginning at 15:00 GMT.
US economic data will kick the week off with Tuesday’s ISM Services Purchasing Managers Index for February, expected to soften to 53.0 from January’s 53.4.
XAU/USD technical outlook
Spot Gold is extending last Friday’s gains, tipping over the $2,100.00 handle in the early week’s trading. XAU/USD is up over a full percent bottom-to-top on Monday, and intraday bids are accelerating into the high end away from the 200-hour Simple Moving Average (SMA) at $2,038.89.
Daily candlesticks are on approach to all-time highs set in December at $2,144.48, and XAU/USD has climbed around 4% from last week’s low bids near $2,025.00.
XAU/USD hourly chart
XAU/USD daily chart
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