{"id":84086,"date":"2024-05-21T15:05:53","date_gmt":"2024-05-21T12:05:53","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=84086"},"modified":"2024-05-21T15:06:20","modified_gmt":"2024-05-21T12:06:20","slug":"gold-reaches-new-record-high-yet-bulls-hesitate","status":"publish","type":"post","link":"https:\/\/www.ironfxcn.com\/nl\/gold-reaches-new-record-high-yet-bulls-hesitate\/","title":{"rendered":"Gold reaches new record high yet bulls hesitate"},"content":{"rendered":"

Gold’s price moved decisively higher in the last few days<\/a>, reaching a new record high, even for a brief period of time. Today we are to discuss the fundamental challenges laid ahead for the precious metal as well as upcoming financial releases that may affect the direction of its price action. Finally, we will be concluding this report with a technical analysis of gold\u2019s daily chart.\u00a0<\/p>\n\n\n\n

The Fed\u2019s intentions<\/strong><\/h2>\n\n\n\n

After the release of a slightly cooler inflation report for April from the US, Gold\u2019s price was allowed to rise as market expectations for the Fed to start cutting rates rather earlier than later seemed to intensify, which in turn weighed on the USD and thus provided support for Gold\u2019s price. Hence, a big factor affecting gold\u2019s price would be the Fed\u2019s intentions. It\u2019s characteristic that Atlanta Fed President Bostic stated that he expects inflation to keep cooling, which was considered as an element that intensified the possibility of earlier rate cuts. On the flip side, though, he also stated that it\u2019s going to be a while before the Fed is certain that inflation is headed back to 2% yoy. Furthermore, we highlight the release of the Fed\u2019s last meeting minutes tomorrow in the late American session on Wednesday. Should the document show that the bank still remains uncertain on whether inflation is returning to its target and is prepared to maintain rates at high levels for longer, we may see gold\u2019s price retreating.<\/p>\n\n\n\n

Middle East remains a source of worries<\/strong><\/strong><\/h2>\n\n\n\n

The crash of the helicopter carrying Iranian President Ebrahim Raisi and his subsequent death on Sunday was a painful reminder of how the Middle East remains a focal point of tensions and market worries. The overall incident at the beginning was shrouded and it was characteristic that rumours began to spread for foul play. The news gave gold\u2019s price some moderate support on Monday\u2019s opening as the precious metal seemed to be receiving safe-haven inflows, until it was verified in the late European session that the crash was an accident, causing gold\u2019s price to deflate and end the day with very slight gains. Yet the situation in the Middle East remains tense, especially given the dire situation of Palestinians in the Gaza Stripe and the possibility of a humanitarian disaster being present. We continue to view the situation in the wider Middle East region as a possible factor that could boost gold\u2019s price, as it could raise uncertainty in the markets exponentially should tensions escalate.\u00a0<\/p>\n\n\n\n

USD\u2019s negative correlation with gold\u2019s price<\/strong><\/h2>\n\n\n\n

It seems that the negative correlation of the USD to gold\u2019s price was once again present in the past week, as the USD index retreated while gold\u2019s price benefited. It should be noted that even the relevant inactivity of the USD tends to allow gold\u2019s price to rise a bit. We expect the negative correlation of the two trading instruments to be present in the coming week as well. Hence, we note that any US-triggered financial releases that could move the USD could also have an effect on gold\u2019s price, yet in the opposite direction. Also, we note that since our last report, US yields despite a roller coaster ride, seem to land a bit lower. Gold\u2019s price as a non-interest-bearing safe-haven trading instrument is also sensitive to US yields, given its antagonistic relationship with US Bonds. Hence, should we see US yields dropping lower, we may see the appeal of the shiny metal being polished and its price getting a boost.\u00a0<\/p>\n\n\n\n

TECHNISCHE ANALYSE<\/strong><\/h2>\n\n\n\n

XAUUSD Daily Chart<\/strong><\/h3>\n\n\n\n
\"Technical<\/figure>\n\n\n\n