- Gold price prints three-day uptrend, confirms technical breakout supporting further advances.
- Strong China PMIs favor risk-on mood as US Dollar retreats after posting the biggest monthly gain since September 2022.
- Hawkish Fed bias challenges XAU/USD upside before US S&P Global, ISM PMI figures for February.
Gold price (XAU/USD) begins March on a firmer footing as it refreshes intraday high near $1,835 during the three-day winning streak amid early Wednesday in Europe.
The metal’s latest run-up appears logical from both the fundamental, as well as technical, perspectives as China-linked news join the XAU/USD run-up beyond the $1,823 previous resistance.
That said, strong prints of China’s Caixin and NBS Manufacturing PMIs for February join the Non-Manufacturing PMI for the said month to mark an upbeat economic rebound in the world’s biggest industrial player, as well as one of the major Gold consumers. Following the data, China Finance Minister Liu He showed readiness to bolster the nation’s fiscal spending while also mentioning that the foundation of China's economic recovery is still not stable.
Elsewhere, recently softer US data weighed on the US Dollar Index (DXY), which prints mild losses after the biggest monthly gains since September 2022 and allows the Gold buyers to keep the reins.
However, hawkish concerns surrounding the US Federal Reserve (Fed) and fears of more inflation crunch moving forward seem to keep a tab on the XAU/USD price.
While portraying the mood, S&P 500 Futures turn positive after initially tracking Wall Street’s mild losses but the US Treasury bond yields remain firmer at the latest.
Moving on, the US S&P Global and ISM PMI details for February will be important for immediate directions ahead of the next week’s key US jobs report. Above all, March’s Fed meeting and Chairman Jerome Powell’s testimony will be crucial for the Gold traders.
Gold price technical analysis
Gold price extends the previous day’s rebound from the 200-day Exponential Moving Average (EMA) to defy the three-week-old bearish channel. Adding strength to the recovery moves is the looming bull cross on the MACD and the RSI (14) rebound from the oversold territory.
With this, the XAU/USD appears well-set to aim for the 100-day EMA hurdle of $1,848.
However, the early February swing high of $1,890 will precede the $1,900 threshold and challenge the Gold buyers past $1,848.
Meanwhile, the XAU/USD pullback remains elusive unless the quote stays beyond the aforementioned bearish channel’s top line, close to $1,823 by the press time.
Following that, the 200-day EMA and the stated channel’s bottom line, around $1,804 and $1,784 in that order, appear important to confirm the bearish bias.
Gold price: Daily chart
Trend: Limited upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
![EUR/USD stays in positive territory above 1.0850 after US data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-euro-and-dollar-banknotes-17371247_XtraSmall.jpg)
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
![GBP/USD stabilizes above 1.2850 as risk mood improves](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/strong-pound-weak-dollar-17536259_XtraSmall.jpg)
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
![Gold rebounds above $2,380 as US yields stretch lower](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-gm187363896-28836378_XtraSmall.jpg)
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
![Avalanche price sets for a rally following retest of key support level](https://editorial.fxstreet.com/images/Avalanche/Avalanche_XtraSmall.jpg)
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
![The election, Trump's Dollar policy, and the future of the Yen](https://editorial.fxstreet.com/images/Macroeconomics/Events/US%20Elections/Donald_Trump_closeup_XtraSmall.jpg)
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.