GOLD hanging high, not far from the historical peak set recently

The world gold price is trading at 2,190 USD/ounce, up 12 USD/ounce from yesterday. Investors are anticipating US inflation data, which could provide insights into the US Federal Reserve's policy pivot. Despite the USD rebounding, precious metals remain near their recent historical peak.

Investors are waiting for US economic data to be released later this week to more clearly determine when the US Federal Reserve (Fed) will begin its interest rate reduction cycle.

Currently, most experts are optimistic about gold in the near future, saying that this precious metal is strongly supported by expectations that the Fed will cut interest rates this year even though inflation is still "persistent". , strong demand from central banks and fears of geopolitical tensions.

Gold reached a record high last week after the Fed suggested three interest rate cuts in 2024. However, commodity analysts are doubtful that gold can continue to rise due to its significant increase in March.

Comment:

After falling below $2,190 under pressure from a rebound in the USD as Fed official Waller said the Fed was in no hurry to cut interest rates and could maintain current interest rates longer than expected, gold is now rebounding to above. $2,195. USD decreased slightly. DXY fell to 104.34

Trade active:

Resistance 2216-2214 Close 1/2 + 70pips ✔️✔️✔️ Move SL to Entry 😮

Comment:

The USD is rising slightly, with the DXY index up nearly 2% from its March low and up 3.3% year to date.

Comment:

🟢Fed's Powell: The fact that the United States is growing strongly, and the labor market is strong, gives us the opportunity to be more confident about inflation until interest rates are lowered.

Comment:

Gold kicked off the first quarter of 2024 with solid gains, extending the positive momentum established in the latter part of 2023. During this upturn, XAU/USD soared to new all-time highs, decisively breaking past the $2,150 mark, and eventually reaching a peak of $2,222. Although prices have since experienced a slight retreat, the precious metal remains near record zone at the time of writing.

Comment:

According to technical analysis, the impact of the PCE index and core PCE on the currency can go in two directions: Increasing CPI can lead to increased interest rates and an increase in the local currency; On the other hand, if the economy is in recession, an increase in CPI can lead to a deeper recession and a devaluation of the domestic currency.

Comment:

📌According to technical analysis, gold prices are still in an uptrend and may reach $2,300/oz. If economic data is negative, prices may face profit-taking pressure with support levels at $2,150-2,100-2,080/oz. Trading plan: sell at $2,300 and buy at $2,150.

Comment:

Precious metals markets have benefited from expectations of interest rate cuts by the Fed. In addition to investors buying to seek profits, the need for safe havens increased sharply at central banks.

The price of substituted gold may increase to 2,300 USD/ounce in the second quarter of this year, when the demand for gold to shelter cash flow continues to increase due to geopolitical tensions.

Comment:

Canada's March S&P global manufacturing PMI was higher than February

+++ Canada's March S&P global manufacturing PMI: 49.8, just below 50

+++ Previous: 49.7