#Gold Analysis: Geopolitical Tensions Could Support Gains (29 May 2024)

-
  • Gold prices dipped on Wednesday from yesterday's highs near $2,365 an ounce. Investors continued to trim bets on Federal Reserve rate cuts this year following recent comments from officials and ahead of the key personal consumption expenditures (PCE) inflation report.
  • Yesterday, Minneapolis Fed President Neel Kashkari said in an interview that the Fed should hold off on cutting rates until inflation improves significantly.
  • Thus, it could even raise rates if inflation fails to come down further.

In general, traders are now focusing on personal consumption expenditures data scheduled for release on Friday, the Federal Reserve's preferred measure of US inflation, which is expected to be in line with the Consumer Price Index, indicating that prices are not accelerating.

At the same time, rising geopolitical risks in the Middle East continue to enhance the appeal of a safe haven. Meanwhile, the recent reports showed that the Israeli army denied striking a tent camp west of Rafah, with Gaza health authorities reporting that Israeli tank shelling had killed at least 21 people in a designated civilian evacuation zone.

According to the platforms of licensed currency trading companies, the US dollar index rose above the 104.7 level today, Wednesday. It rebounded more from its recent lowest levels amid hawkish signals from the Federal Reserve, while investors prepared for the US personal consumption expenditures price report scheduled for later this week. Furthermore, the Fed should hold off on cutting interest rates until significant progress is made on inflation, Minneapolis Fed President Kashkari told CNBC on Tuesday. Also, he stated that the US central bank may consider raising interest rates if inflation does not continue to decline.

Meanwhile, data on Tuesday showed that US consumer confidence unexpectedly improved in May, reinforcing hawkish expectations on Federal Reserve policy. Now, markets see December as the likely start of the monetary easing cycle, well after previous expectations of a September rate cut.

According to trading, the price of the US dollar strengthened in all areas. Nevertheless, failed to gain much momentum against the Australian dollar, with the monthly inflation rate in Australia accelerating to its highest level in five months.

Another factor affecting the gold market, the yield on 10-year US Treasury bonds rose by about 10 basis points to reach 4.54% after the bad results of the 5-year and 2-year auctions led to sales. Moreover, the United States sold five-year bonds worth $70 billion at an interest rate of 4.553%, slightly above the pre-auction level of 4.540%. An earlier offering of $69 billion in two-year bonds also saw tepid demand. Likewise, bond markets were already under pressure earlier in the session after data showed US consumer confidence rose unexpectedly in May, dampening expectations for an interest rate cut.

Also, investors digested comments from Minneapolis Fed President Neel Kashkari, who indicated that the current policy stance is restrained but stressed that officials have not completely ruled out additional interest rate hikes.

Gold Price Forecast and Analysis Today:

The price of gold may remain supported if global geopolitical tensions continue to increase along with more central bank purchases of gold. Therefore, the chances of a rise are still stronger, and the bulls’ control over the trend will increase if the gold price moves towards the resistance levels of 2372 and 2385, then the psychological resistance of $2400 per ounce again. On the other hand, according to the performance on the daily chart with the $2,300 support level broken, there may be opportunities to think about starting to buy gold again.


To get ACCURATE LIVE ACCURATE 2-3 TRADES (Forex/Comex/Stocks) Telegram Financial Advisor

BEST FOREX SIGNAL TELEGRAM GROUP
XAUUSD FOREX INDICES ACCOUNT MANAGEMENT

#SaudiArabia #UAE #Qatar #HongKong #Portugal #PortugueseGP #France #forex #commodities #forexSaudiarabia #forexYemen #forexasia #forexJordan #Singapore #UAE #UK #forexsignals 

Comments

Post a Comment

Popular posts from this blog

Gold (XAUUSD) Price Prediction for May 2020 | FOREX RECOMMENDATION

-
Image
The below gold price forecast article is a part of the May 1, 2020 Gold & Silver Trading Alert that we sent to our paid subscribers. Enjoy: Practically everything that we wrote on Monday, and yesterday. remains up-to-date today. In fact, yesterday’s decline, the volume that accompanied, and the gold-USD link all further confirm the forecast that current situation in gold, silver, and mining stocks is similar to what happened in the first half of March. Let’s take a look at the details. Starting with a quote from our previous analysis to provide context: In short, the USD Index is after a huge rally and a correction. In late March, the USD Index corrected the previous rally in terms of price moves, but not in terms of time. The latter is what it seems to have been doing for the past month. The USD Index did move higher in April, but the moves were relatively boring – somewhat similar to how it rallied in January and February. And what did gold do at that time? It moved h
Read more

S&P 500 Forecast 2020: When will equities peak?

-
Image
S&P 500 Forecast 2020: When will equities peak?  The most profitable bull market in history arouses a lot of interest among bears. The fourth year of the presidential term has, on average, the worst performance in the S&P 500. The trade war, the Brexit or Trump appear to be the most critical threats for a market insensitive to dangers. American stock market indices have started the new year at  record highs . On Thursday 2, the futures market shows a 0.91% increase and the S&P 500 index close to hitting the 3250 price level. The current  upward trend began in March 2009 , when the S&P 500 hit the 660-point zone of the global stock market benchmark. Since then, the strong coordinated actions of all the major central banks of the world, injecting trillions of dollars into the economic system, have driven the American indices to new annual highs. It is more than evident that   the current situation is unsustainable . The current stratospheric price levels i
Read more

Top 5 Things to Know in the Market on Thursday, April 9th 2020

-
Image
Another 5.25 million Americans are expected to have filed for jobless benefits last week. The numbers are out at 8:30 AM ET (1230 GMT). OPEC and Russia will meet to thrash out a possible cut of some 10 million barrels a day in output - but any agreement will likely be conditional on some form of contribution from the U.S. Stocks are set to open mostly lower after a late surge on hopes of a peak in virus cases in New York, while the U.K. is set to start borrowing directly from the Bank of England - and neither the pound nor the bond market seems to mind. Here's what you need to know in financial markets on Thursday, April 9th. 1. Get your hard hat on - it's time for U.S. jobless claims again It’s jobless claims day again. The Labor Department releases its weekly figures for initial claims at 8:30 AM ET (1230 GMT), and analysts predict only a modest drop to 5.25 million from last week’s record of 6.65 million. If that’s borne out (and watch for revisions to the previou
Read more