The XAU/USD pair has maintained its stability above the $2,900 mark as it trades around $2,920 per troy ounce. This resilience indicates a potential retest of its record high, driven by a bullish trend that has unfolded in recent sessions. The 20 Simple Moving Average (SMA) is currently providing intraday support at approximately $2,904.60, while the 100 and 200 SMAs are progressing far below it.
Recent economic data from the United States has contributed to this stability. Initial Jobless Claims rose by only 213,000 for the week ending February 7, a figure lower than anticipated. Additionally, the US Producer Price Index (PPI) exceeded expectations, further influencing market dynamics. The XAU/USD pair has developed above all its moving averages, with the 20 SMA advancing beyond the 100 and 200 SMAs, reinforcing its bullish tone.
On a daily basis, the pair has been posting higher highs and higher lows, reinforcing its upward trajectory. Support levels for the pair are identified at $2,904.60, $2,889.80, and $2,872.30, while resistance levels stand at $2,925.10, $2,942.50, and $2,960.00. The 100 and 200 SMAs are providing mid-term dynamic support at around $2,808.30.
The 20 SMA is a crucial factor in the pair's current performance, offering a bullish outlook as it progresses beyond its longer-term counterparts. With the XAU/USD pair finding consistent support at this level, it suggests a favorable environment for potential gains.