Breaking: Gold extends rally to fresh all-time highs above $2,050

Eren Sengezer FXStreet

The troy ounce of the precious metal extended its relentless rally on Wednesday and touched a fresh all-time high of $2,055 during the American trading hours. As of writing, the XAU/USD pair was up 1.7% on a daily basis at $2,054.

The broad-based selling pressure surrounding the greenback continues to boost gold. With Wednesday's macroeconomic data releases from the US providing a boost to sentiment, the US Dollar Index slumped to a daily low of 92.58.

The ADP Employment Change for July came in at 167K and missed the market expectation of 1.5 million by a wide margin. However, June's reading of 2.3 million got revised up to 4.3 million. On the other hand, the ISM Services PMI improved from 57.1 in June to 58.1 in July to show an expansion in the service sector's economic activity at a robust pace.

Reflecting the upbeat market mood, Wall Street's main indexes are up between 0.4% and 1.1% on the day and the 10-year US Treasury bond yield is gaining nearly 9%.

US Data Analysis: Big jobs number? Negative NFP looks more likely, trends could extend in gold, dollar.

"Big jobs number on Friday" – said President Donald Trump to Fox News and the public ahead of July's all-important Non-Farm Payrolls report.

It doesn't look that way – the NFP could be a small number or even negative.

Gold: Further push higher to $2075/80 – Credit Suisse.

Gold extends its move to a new record high as the yellow metal has surged above the $2030 mark. Strategists at Credit Suisse look for a further push higher to the next flagged resistance at $2075/80, but then finally some consolidation. Weakness from here though, if indeed seen, will still be viewed as temporary and corrective.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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