XAU/USD back on the high side as bidders seek $2,100 post-US ISM PMI miss
- XAU/USD climbs back over $2,060.00 on Friday.
- A miss on US ISM PMI numbers are fueling investor appetite.
- Hopes for Fed rate cuts mount with each data print that suggests easing inflation.
Spot Gold caught a bump on Friday after the US ISM Manufacturing Purchasing Manager Index (PMI) came in below expectations, sparking renewed hopes of the Federal Reserve (Fed) delivering rate cuts sooner rather than later.
The US ISM Manufacturing PMI for February unexpectedly slid back on Friday, printing at 47.8 versus the forecast increase to 49.5 against the previous month's 49.1.
Read more: ISM Manufacturing PMI declines to 47.8 in February vs. 49.5 expected
The Fed's latest Monetary Policy Report revealed the Fed is cautiously optimistic that inflation is coming under control, albeit with some notable sticking points in a still-tight labor market and stubborn shelter and rent prices inflation caused by housing supply constraints.
Federal Reserve MPR: Inflation expectations are broadly consistent with 2% goal
Technical outlook
Spot Gold is rallying hard on Friday, crossing $2,060.00 in the early US session and cracked $2,080.00 at the time of writing. Near-term XAU/USD bids caught a technical bounce from the 200-hour Simple Moving Average (SMA) near $2,030.00.
XAU/USD daily candlesticks are set for a break of the $2,100.00 price handle, and the nearest technical ceiling beyond that rests near all-time highs near $2,144.48 set in early December.
XAU/USD hourly chart
XAU/USD daily chart
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
