Gold Spot Price Reverses From 2023’s Fresh Highs

The Gold Spot Price (XAUUSD) took a breather after a firm rally which sent the precious metal peaking 1.92% week-to-date, as bulls chase the all-time high with a second consecutive week potentially closing in the green.

This week’s key drivers of bullish momentum include a weakening U.S. economy and fears of an imminent recession. U.S. Inflation came in lower-than-expected, landing at 5%, compared to 5.2% expected and 6% in the prior month. Following the downward trajectory were the U.S. labour market and retail sales, which showed softness month to month. Gold shined as a safe-haven asset as traders sought to protect themselves from the downside exposure of risk assets.


The Gold spot price has traded in a strong uptrend, with price action well above its 100-day moving average, trading within an ascending channel pattern. Support was established at the 1980.70 level, while resistance was formed at the 2048.72 level, following a reversal from the level.

Bears took the chance to sell high, sending the spot price into a retracement with the 50% Fibonacci Retracement level in sight. If bullish traders look to sweep into the market, a reversal from the 2014.71 level is probable, with sights set on the 2048.72 level as a probable take-profit zone.

Alternatively, if bearish traders look to run with their current momentum, a breakdown below the 50% Fibonacci Retracement level on high volumes could prompt an extended move lower, with support at the 1980.70 level likely to be a level of interest for bears.


The Gold spot price will likely face tailwinds as the U.S. economy slows and potentially tilts into a recession. Adding to the gloomy global economic outlook is the IMF’s revised outlook pointing to slower growth, down ten basis points against its January outlook. The safe-haven attribute for the precious yellow metal will probably shine, as a result, leaving the 2048.72 level probable.

Sources: Reuters, TradingView