GOLD’s recent period of consolidation

Updated

Gold ended the week higher after a late rally on Thursday and Friday. It had initially pulled back from its all-time high due to trendline resistance. The precious metal is expected to react to the latest US inflation data, which affects Treasury yields, interest rate expectations, and the US dollar. Gold bulls are hopeful that softer CPI data will drive the metal higher and test the all-time high.

Gold broke its recent consolidation period, surpassing the resistance at $2,340/oz. Buyers pushed the price to a three-week high on Friday, and gold opened above the 20-day moving average. If it can stay above this level, further gains are expected. The ongoing situation in the Middle East may also contribute to increased demand for gold.

🖥 GOLD MARKET ANALYSIS AND COMMENTARY - [May 13 - May 17]

In the near future, the trend of gold price is still being noticed by the falling price channel but it also has technical conditions to increase the price, but with the closing price position as shown in the chart, gold can still decrease. adjusted to test the EMA21 and notable technical levels are listed below.
Support: 2,335 – 2,330 – 2,305USD
Resistance: 2,366 – 2,378USD

🪙SELL XAUUSD | 2393 - 2391

⚰️SL: 2397

⬆️TP1: 2386
⬆️TP2: 2381

🪙BUY XAUUSD | 2329 - 2331

⚰️SL: 2325

⬆️TP1: 2336
⬆️TP2: 2341

Note

Gold falls below $2,342

After rising to $2,348 at the beginning of the US session, gold is currently correcting back to nearly $2,341.

Fed Board of Governors member Jefferson continued to repeat the argument that the economy is still in a good position, and clear evidence is needed that inflation is falling sustainably toward the 2% target level to cut interest rates.

The focus this week is US CPI data for April

Note

Gold recovered to above $2,343 during the Asian session

After falling to nearly $2,336 during yesterday's US session following the announcement of the New York Fed's inflation expectations, gold is now up nearly $10 back to $2,343.

Note

Fed is "hawkish", GOLD corrects and stays above EMA21

Note

🟡Gold futures rose during the Asian session

Gold futures rose during the Asian session on Tuesday.

According to the New York Mercantile Exchange's COMEX classification, June gold futures were trading at USD2,349.35 per ounce at the time of writing, up 0.27%.

It was previously trading at a high of USD2,350.50 per ounce. Gold may find support points at USD2312.90 and resistance at USD2385.30.

Note

Fed Chairman Powell reiterated the Fed has the ability to keep interest rates higher for longer

+++ Officials should be patient and let the restrictive policy work

+++ Lack of progress on inflation in the first quarter

Note

Gold prices touched $2,359 on Tuesday after data released by the US Department of Labor revealed that inflation rose above estimates. However, US government bond yields are sliding, an obstacle for the greenback.

Note

🔼GOLD reaches this level before the US inflation data is revealed

Gold prices rose during these moments of trading, today, Wednesday, as investors looked forward to reading inflation data in the United States that could provide evidence on the path of reducing interest rates by the Federal Reserve.

Note

Fed Chairman Jerome Powell said the labor market is strong but is also gradually cooling. Fed policymakers are trying to tamp down inflation by weakening demand across the economy and looking for more signs that the labor market is easing.

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