Gold hits fresh all-time highs, enters bull run with fifth consecutive day of gains

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• Gold hits yet again another fresh all-time high near $2,870 on Wednesday.

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• Equities edge lower amid Asia reopening after Chinese New Year holidays.

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• Gold extends rally for a five-day winning streak. 

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Gold’s price (XAU/USD) has no limit and rallies for a fifth consecutive day in a row on Wednesday, accounting for more than 2% of gains this week and hitting fresh all-time highs near $2,870. Softer economic data from the United States (US), which further supports the case for another rate cut from the Federal Reserve (Fed), together with quickly fading tariff fears, is lifting Gold to higher levels day by day. 

On the economic data front, the calendar could become an additional tailwind for Gold to stretch even higher. This Wednesday, US Purchasing Managers Index (PMI) data for January will be released. A softer PMI print could be enough to set off Gold again to a new all-time high. 

Daily digest market movers: Gold considered a safe haven

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• Investors and traders are parking their cash under Gold, away from tech stocks, whilst being safe from the fresh lows in US yields as inflation concerns abate, Bloomberg reports.

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• At 14:45 GMT, S&P Global will release the January final reading for the Purchasing Managers Index. The ISM Services PMI is expected to stay stable at 52.8.

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• At 15:00 GMT, the Institute for Supply Management (ISM) will also release its PMI data for the Services sector as a whole:

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• The PMI is expected to tick up to 54.3 from 54.1 in December.

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• The Prices Paid component was at 64.4 last time and has no forecast.

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• The CME FedWatch tool shows an 83.5% chance of keeping interest rate unchanged in the March 19 meeting, compared to 16.5% for a 25 basis points rate cut. 

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Technical Analysis: China market opens 

Gold is on a tear again, and with China heading back into markets after the Chinese New Year holidays, expect to see a catch-up move in assets. With the Bullion rally heading into its fifth day on Wednesday, expect Chinese traders to try to catch up with it, meaning that any brief dip or pullback will be bought with interest. Since there are no reference levels that bear historic value anymore, the intraday Pivot Point levels are becoming increasingly important. 

The Pivot Point level for this Wednesday is the first nearby support at $2,831. From there, S1 support should come in at $2,818, though it does not look the best. Instead, look for S2 support at $2,793, which roughly coincides with$2,790 (the previous high of October 31, 2024) as a more significant level. 

On the other side, R2 resistance at $2,869 is the next level to watch, followed by the logic big figures such as $2,880 and $2,900. Further up, some analysts and strategists have already called for $3,000.

XAU/USD: Daily Chart