Gold reaches a new all-time high of $2,500

Gold surged on Friday, reaching a record high of $2,500 as fresh market turbulence boosted demand. Stronger-than-expected U.S. economic data outweighed the impact of a much weaker July jobs report, brightening the economic outlook.

Diminishing recession fears also reduced the likelihood of a larger rate cut by the Federal Reserve in September, with expectations falling back from 50 basis points to 25 basis points.

Despite the optimism, traders remain cautious due to mixed signals on economic conditions, opting for safety until clearer trends emerge.

Gold is poised for a solid weekly gain of around 2.2%, with a close above the previous high of $2,483 reinforcing bullish momentum. However, the significance of the $2,500 resistance and overbought daily indicators could lead to consolidation.

Support from the rising 10-day moving average at $2,436 is expected to limit any pullbacks, but a break below this level could shift the bias, triggering a deeper correction toward $2,422-$2,400 (20-day moving average and psychological support).

Res: 2500; 2512; 2551; 2600
Sup: 2477; 2450; 2436; 2422