Gold’s recent crawl back up closer to $2,000 is awaiting validation from the US PCE core deflator due later today.
Further evidence of still-sticky US inflation, with another 4.7% print that matches January’s number, may force bullion bulls to wait a while longer before reclaiming the $2k handle.
Although spot gold is easing slightly at the time of writing, gold bugs will be heartened by its advances this month exceeding 8%, potentially its largest since November.
Gold’s fortunes were aided this month by the weaker US dollar, as the banking turmoil prompted markets to slash their expectations for further Fed rate hikes in 2023.
However, should contagion fears subside substantially and restore the Fed back to its hawkish inflation-fighting stance, that may drag the precious metal back into the mid-$1900 region.
Gold bugs may be further encouraged to test resistance at the 50-day SMA around $1990 if US hiring momentum is truly waning.
2 June 12:53
Spot gold is attempting to stage a slight recovery ahead of the weekend, after being dealt a further blow by Thursday’s upward revisions to US GDP.
26 May 13:51
Gold has been dragged below the psychologically-important $2,000 level this week due to optimism surrounding a US debt deal, while markets also ramped up bets of a Fed rate hike in June.
19 May 13:17
The longer that spot gold can keep its head above $2k amid sustained inflows into bullion-backed ETFs, the greater the chances of the precious metal revisiting its all-time high.
12 May 12:19
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