XAUUSD sets new record high, touching above $2300

XAUUSD has reached another milestone, briefly touching above the key $2300 level.

The continuous rise came amid yesterday's lower-than-expected ISM services PMI reading (51.4 vs 52.7).

Fed’s chairman Jerome Powell’s has also provided comments underscoring the possibility for the interest rate cuts to happen this year, given there is enough evidence that inflation is moving towards it’s 2% target rate.

Geopolitical tensions in the Middle East and Ukraine-Russia conflict continue to underpin bullions’ safe heaven stance among market participants.

Physical demand, especially from the central banks, has also extended support to the yellow metal, with China spearheading the gold purchases.

A continuation of the geopolitical instability combined with potential rate cuts and stronger demand for physical gold may further contribute to the XAUUSD’s upward momentum.

From the technical perspective …

• XAUUSD is trading above key simple moving averages (21, 50 & 100-perios SMAs), underscoring a strong bullish momentum
   
• The relative strength index (RSI) is in the overbought territory (>70 – overbought, <30 – oversold), signaling for a potential technical pullback
   
• To the upside the key resistance level is sitting at today’s high of ~$2304.68, while to the downside the ~$2265 may provide an immediate support