Forex Gold is back to soar and recorded a new all-time high

[FXOchartist]

The price of gold rose slightly by around 0.76% from today's open price. After price volatility occurred last week due to the NFP release, gold price changes bounced from the low of $2277 now close. The nearest resistance target refers to the upper band around $2310. A break of resistance allows the price to find new resistance at the high of $2320.
Bank holidays in Japan and the UK may reduce the volatility of changes on Monday, with prices expected to move within the daily range.

 

[FinTrader]

I don't see anything surprising here. Whenever there are various wars and crises in the world, large investors invest in the most liquid and safe asset, which is gold. Accordingly, due to increased demand, its price is rising.

 

[FXOchartist]

I don't see anything surprising here. Whenever there are various wars and crises in the world, large investors invest in the most liquid and safe asset, which is gold. Accordingly, due to increased demand, its price is rising.

Even though it fell a few hours after last week's NFP, it is still possible that gold still has the potential to rise even though the Fed is still maintaining high interest rates at this time.

 

[FXOchartist]

Yesterday's gold price rose and formed a bullish candlestick with a price range of $2291 - $2331.
Gold price increases may encounter resistance near the middle band line at around $2340.In the short term, gold is still consolidating in the hourly range of $2318 - $2331.

The NFP news released in May showed that the actual data was lower than the forecast, reflecting a value that was far from market expectations, which might weaken the USD Friday's U.S. Nonfarm Payrolls data from the Bureau of Labor Statistics showed 175,000 fewer jobs than forecast in April.

 

[FXOchartist]

Gold prices fell on Tuesday largely due to the strengthening of the US dollar.
Although last Friday's NFP data showed a weakening labor market indicating that the Fed may cut interest rates sooner than expected, however, comments from Fed members over the past few days continue to indicate reluctance among policy players to reduce interest rates soon.

Richmond Fed President Thomas Barkin said current interest rates should cool the economy enough to bring inflation down to the Fed's target of 2.0%, but it will be a "tough road," and "that doesn't mean you won't get there. That's right." it just takes time."

 

[FXOchartist]

Gold price traded tightly yesterday forming a bearish candlestick with a small body. The price is still moving between the middle and lower band lines on the daily timeframe. Here the Bollinger bands draw a flat channel reflecting the sideways market.

Gold prices tend to move slightly above the $2300 support. Several points that are currently of concern to the market:

• US dollar recovers after Fed Kashkari's hawkish guidance on interest rates.
• Tensions in the Middle East worsened due to Israel's invasion of Rafah.

 

[FXOchartist]

Gold price surged over $36.52 yesterday with a rise of 1.58% from $2306 to a high of $2346 by forming a long-body bullish candlestick without a shadow. Some reasons for the rising gold prices include several global central banks finally continuing to cut interest rates. In Sweden, the Riksbank took steps to reduce interest rates by 0.25% to 3.75%. The Bank of England meeting showed an increasing willingness to lower interest rates. The Swiss National Bank (SNB) lowered interest rates at its March meeting, the RBA's dovish policy and the European Central Bank (ECB) has guaranteed it will cut interest rates in June.

Geopolitical tensions are also a concern for traders, the Israeli attack on Rafah shows the need for a ceasefire so that the war continues. Elsewhere the Ukraine vs Russia war adds further pressure on the risk side.
Also, Chinese data showed China's exports rose more than forecast at an annualized 1.5% in April, recovering from a 7.5% decline in the previous month.

 

[FXOchartist]

Before the market closed, the increase in gold prices was stuck at $2378. Gold prices failed to continue their rally toward market close due to possible profit-taking.

Now the price of gold is at $2360 near MA 20. Several central banks that will open up the possibility to cut interest rates seem to be one of the drivers of the raising in gold prices.

 

[FXOchartist]

At market opening, the price of gold opened at $2360, there was no gap in gold today at the start of the week after the market closed on Saturday and Sunday. However, gaps occur in several forex pairs such as USDJPY, EURJPY, and CHFJPY. Gold prices are still moving between the middle and upper bands in the bullish zone in a daily timeframe.

 

[FXOchartist]

Gold prices fell yesterday after rallying last week to reach a high of $2378. Prices may still be looking for a retrace as they wait for US inflation data to be released on Wednesday.

Gold price is now at 2338 consolidating near the lower band in the H1 timeframe, a break of the low level will probably bring gold to look for support near $2300. While the next support is near $2280.

 

[FXOchartist]

Global geopolitical events can have an impact on the demand for gold as a safe haven. The geopolitical tensions currently raging in Rafah have increased international criticism of Israel, which has killed more than 30 Palestinian residents.

Yesterday the price rose from a low of $2334 to a high of $2359. Apart from geopolitical events, gold is also the choice of central banks as a reserve asset. The BRIC countries have also abandoned the USD as a currency for international transactions, increasing demand for gold. The only obstacle is the Fed's interest rates which are still high, this causes people to prefer high yields to buying gold. Today will release important news US inflation data to be a concern among traders.

 

[FXOchartist]

Gold prices soared to a high of $2390 after the news release of CPI data which was lower than forecast. After the CPI news release caused the USD to weaken, even though prices were volatile, gold ultimately rally sharply and drew a bullish candlestick with a long body. Not only gold, but other metals Silver also jumped due to CPI data. The price is now near the upper band line, a break of the $2390 price level may be a bullish continuation.

 

[FXOchartist]

Gold prices pullback after a strong rally following US inflation data. Yesterday gold price drew a high of $2397 and a low of $2370.

Gold prices failed to continue yesterday's bullishness and were stuck near the upper band line which then pullback due to profit taking action. It was reported that gold prices rallied sharply after the CPI data was released with the actual data being lower than forecast.

CPI data got a market response and caused the price of gold to rally strongly reaching a price of $2397 was almost close to the target of $2400.
Cooler US Consumer Price Index (CPI) and Retail Sales data for April provide expectations for the future path of US interest rates, which is an important factor for Gold's value.

The lower CPI data reflects disinflation which advances expectations that the Fed will cut interest rates. According to CME's FedWatch Tool, there is about a 75% chance that the Fed's interest rates will be at lower levels after the September meeting.

 

[FXOchartist]

Gold prices jumped sharply on Friday's trading weekend. The yellow metal drew a low of $2373.71 and a high of $2422.46. Meanwhile, the highest gold price of $2431.20 was formed last April.

The soaring gold price seems to have been triggered by optimistic market sentiment with the possibility that the Fed will cut interest rates in line with cold US inflation data. The price spike also occurred in the silver metal commodity, XAGUSD also jumped from 29,453 to a high of 31,591 at market close.



Happy profits

 

[FXOchartist]

Precious Metal prices, both gold and silver, rose sharply last week after US inflation data showed values lower than forecast, gold prices managed to reach price levels above $2,400 while silver also soared above the price level of $31.

Apart from being influenced by increasing expectations of the Fed cutting interest rates, China's economic progress showing recovery has also triggered increased demand for gold. In terms of geopolitical risks, gold is also still considered a safe-haven asset which is used as a central bank reserve.

 

[FXOchartist]

Gold prices failed to continue their rally on Monday, pullbacks and surging prices reflect market consolidation.
On the daily timeframe, gold prices are moving near the upper band line which may be a resistance zone. However, the expanding Bollinger band line reflects increased volatility.

MA 50 crossed the lower band line from the downside drawing an ascending channel reflecting bullish momentum.
However, this signal received an alert from the RSI which pointed to level 67, which means the price was slightly below the overbought level.

 

[FXOchartist]

Gold prices tended to move flat in yesterday's trading by drawing a bearish candlestick with long shadows on the top and bottom of the candle indicating an indecision candle. It seems that gold prices are entering a consolidation zone after last week's strong rally due to cooling US inflation data.

However, recently Fed officials seem to still be hawkish and will keep interest rates high for longer. High interest rates are not good for gold and investors prefer cash or bonds that provide high returns.

CME FedWtach survey results, the probability of the Federal Reserve lowering interest rates by 25 basis points in September increased slightly to 49.6%, up from 48.6%

 

[FXOchartist]

After the release of the FOMC meeting minutes, the prices of precious metals, both gold and silver plunged due to the impact of the strengthening of the USD as the hawkish attitude of Fed officials at the FOMC meeting minutes. Gold prices fell from $2426 down to a low of $2374.

FOMC unanimously decided at the meeting to maintain its benchmark short-term lending rate at 5.25%-5.5%.

The meeting summary said "Participants observed that although inflation has declined over the past year, in recent months there has been a lack of further progress in achieving the Committee's goal of 2 percent. The recent monthly data had shown significant increases in components of goods and services price inflation."

 

[FXOchartist]

Today's gold price fell to the price level of $2326.91 from a high of $2383.67, it appears that the price is drawing a bearish candlestick with a long body reflecting the sharp fall in gold prices.

Gold prices continued to fall on Thursday continuing Wednesday's decline after the Fed's FOMC minutes. Gold prices have dropped to a low of $2326, continuing Wednesday's decline after a short correction.

The FOMC meeting minutes held last Wednesday which were attended anonymously by Fed officials maintained high interest rates at 5% - 5.50%. According to Fed officials, inflationary pressure is still persistent despite the cooling.

High interest rates hamper demand for gold because cash and bonds are more attractive to investors.

 

[FXOchartist]

Gold prices are consolidating after a sharp decline the previous two days.

Gold plunged this week after hitting a record high of $2450 to a low of $2325. The fall in gold prices is suspected to be due to hawkish comments from Fed policymakers which caused the USD to strengthen and triggered gold prices to fall after failing to maintain the $2400 price level.

Next week, investors will probably pay attention to comments from Fed officials who are part of the policymakers.
According to the CME FedWatch Tool, the market expects almost 50% of the Fed to leave interest rates unchanged until September.