World gold experienced significant downward pressure on Friday, as the release of US Core PCE data indicated a decline in inflationary pressures. However, this was followed by a sharp decline in gold prices due to better-than-expected US economic data and "hawkish" statements from FED officials, emphasizing the need for higher interest rates in the future. Today, the market's focus is on the release of Manufacturing PMI data at 21:00.
Last Friday, the US released Core PCE data which revealed that US PCE increased by 0.3% MoM in April, with an annual PCE index growth of 2.7% YoY. The figures were in line with expectations, according to the Commerce Department. Furthermore, core PCE, which excludes volatile food and energy prices, rose by 0.2% MoM in April, compared to a 0.3% increase in March. On a yearly basis, the core PCE price index rose by 2.8% for the third consecutive month.Despite the Core PCE data falling short of expectations, it did not provide enough impetus for the Federal Reserve (Fed) to lower interest rates. The central bank may require some additional time to reach its target. Initially, investors anticipated a rate cut in March, but it has now been postponed until September. Consequently, this has exerted downward pressure on the price of gold.
Furthermore, geopolitical tensions have also eased, leading to a decrease in the allure of gold. On Sunday, Israeli Prime Minister Benjamin Netanyahu's administration reluctantly accepted President Biden's ceasefire proposal for Gaza. Meanwhile, the offensive in Rafah continues following intense Israeli airstrikes over the weekend, as reported by the BBC.
Today, the market will be closely watching the release of the Manufacturing PMI data from the United States at 21:00. This data is currently projected to be 49.8, which is higher than the previous period's 49.2. If the actual data surpasses expectations, it will exert further downward pressure on gold. Conversely, if the published data falls short of expectations, gold is likely to rebound from the decline it experienced at the end of last week.
SELL ZONE 2354 - 2356 SL 50pips TP 50-100pips
SELL ZONE 2340 - 2342 SL 50pips TP 50-100pips(scalp)
BUY ZONE 2305 - 2303 SL 50pips TP 50-100pips
Last Friday, the US released Core PCE data which revealed that US PCE increased by 0.3% MoM in April, with an annual PCE index growth of 2.7% YoY. The figures were in line with expectations, according to the Commerce Department. Furthermore, core PCE, which excludes volatile food and energy prices, rose by 0.2% MoM in April, compared to a 0.3% increase in March. On a yearly basis, the core PCE price index rose by 2.8% for the third consecutive month.Despite the Core PCE data falling short of expectations, it did not provide enough impetus for the Federal Reserve (Fed) to lower interest rates. The central bank may require some additional time to reach its target. Initially, investors anticipated a rate cut in March, but it has now been postponed until September. Consequently, this has exerted downward pressure on the price of gold.
Furthermore, geopolitical tensions have also eased, leading to a decrease in the allure of gold. On Sunday, Israeli Prime Minister Benjamin Netanyahu's administration reluctantly accepted President Biden's ceasefire proposal for Gaza. Meanwhile, the offensive in Rafah continues following intense Israeli airstrikes over the weekend, as reported by the BBC.
Today, the market will be closely watching the release of the Manufacturing PMI data from the United States at 21:00. This data is currently projected to be 49.8, which is higher than the previous period's 49.2. If the actual data surpasses expectations, it will exert further downward pressure on gold. Conversely, if the published data falls short of expectations, gold is likely to rebound from the decline it experienced at the end of last week.
SELL ZONE 2354 - 2356 SL 50pips TP 50-100pips
SELL ZONE 2340 - 2342 SL 50pips TP 50-100pips(scalp)
BUY ZONE 2305 - 2303 SL 50pips TP 50-100pips
Note
SELL ZONE 2346-2348 SL 50pips TP 50-100pips (scalp)Note
SELL 2340-2342 +50pipsNote
SELL 2346-2348 +100pipsNote
SELL 2354-2356 +110pipsTotal: 260pips wait news plan gold!!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.