- Summary:
- The semiconductor industry just received news of weak outlook by ASML. Also LVMH sales are falling. This and more good news for gold prices.
Gold price rose on Wednesday, coming within less than 1 percent of hitting a new all-time high, as earnings results from corporate giants, LVHM and ASML injected bearishness in stocks. Safe haven gold was up by 0.4 percent at the time of writing, trading at $2,675 per ounce at the spot market.
In addition, the yellow metal hit an intraday high of$2,682, marginally below the all-time high price of $2,685 set in late September. The momentum surrounding gold price is bullish, as it has traded above the Volume Weighted Moving Average (VWMA) for the last three days.Its upbeat start on Wednesday raises the prospect of further gains during the day.
Dutch semi conductor manufacturing giant, ASML Holdings accidentally released its earnings report early, with its guidance showing a forecast decline in sales in 2025. The company attributes the gloomy forecast to a likely underperformance of semiconductor demand outside the AI sector. That dampened the mood in the stock markets, as the semiconductor industry has been a key growth driver this year.
Meanwhile, Louis Vuitton’s parent company, LVMH reported a slump in Q3 sales, casting a cloud on luxury stocks. The luxury goods giant attributed the decline to weak sales in China, adding credence to the perception that the world’s second-largest economy is in stormy waters.
The wobbly earnings announcements favour gold price as investors will likely add more of the metal to their portfolio to cushion themselves against shocks in the stock markets. In addition yields on US treasury bonds also declined, with the benchmark 10-year bonds on the edge of breaking below 4.0 percent. That, too will add support to non-yielding gold in the coming days.
Gold price forecast today
The momentum on gold price favours a continuation of the upside above the pivot mark at 2,670. The bullish momentum will likely encounter the first resistance at 2,684. However, an extended control by the buyers could see that level become a support and instead head higher to test 2,700.
On the other hand, moving below 2,670 will favour the sellers to take control. If that happens, initial support could come at 2,656. Nonetheless, a stronger downward momentum could breach that mark and render the upside narrative invalid. Furthermore, the decline could extend to the second support at 2,643.
