GOLD ( XAUUSD ) March 2, 2023

Gold price advanced to the highest level in almost a week in the first half of Wednesday’s trading, as the US Dollar was thrown under the bus following the release of strong-than-expected China’s February Manufacturing and Services PMI data, which triggered a risk rally in global stocks. However, the upside in the Gold price remained capped, as the risk-on market profile aided the rebound in the US Treasury bond yields across the curve even though investors continued to weigh the prospects of a ‘soft-landing’.

In American trading, Gold price pulled back further from daily highs of $1,845 after the United States ISM Manufacturing PMI slowed down its pace of contraction in February and saved the day for the US Dollar bulls. The US Dollar staged a decent comeback alongside the US Treasury bond yields after the US ISM Prices Paid sub-index jumped to 51.3 in February vs. 45.0 expected and 44.5 last. This is one of the main parameters that the US Federal Reserve (Fed) looks into to gauge the inflation trend. Strong ISM Price Paid data reinforced expectations that the Federal Reserve will keep rates higher for longer, with markets expecting the Fed's target rate to peak at 5.465% in September.

Support levels: 1,825.90 1,812.20 1,803.00

Resistance levels: 1,848.00 1,863.70 1,877.50

Recommendations for trading gold:

Buy GOLD 1830 - 1829

Stop Loss: 1825
Take profit 1: 1835
Take profit 2:1840
Take profit 3: 1850

Sell GOLD 1845 -1846

Stop Loss: 1850

Take profit 1: 1835
Take profit 2:1830
Take profit 3: 1825

Note: Always set TP and SL in all trading cases
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