Gold Prices Surge as Central Bank Buying Boosts Demand
Today, the world gold price listed on Kitco stands at $2,340 per ounce, marking a $28 increase compared to yesterday morning.
International Market Insights:
Gold prices regain upward momentum, driven by central bank buying activity in Asia.
A recent report reveals that the People's Bank of China added 160,000 ounces of gold to its reserves in March. Turkey, India, Kazakhstan, and some Eastern European countries have also been purchasing gold this year.
Senior analyst Ricardo Evangelista from ActivTrades attributes the recent uptrend in gold prices over the past two months to increasing political instability concerns and speculation related to the timing of monetary policy easing by the Federal Reserve.
According to the CME FedWatch tool, traders are currently pricing in a roughly 60% chance of a Fed rate cut in June.
Conclusion: The upward trend of gold is expected to continue until the end of this year due to safe-haven demand amid economic recession fears and ongoing conflicts.
However, a strong US dollar, rising bond yields, difficulty in Fed monetary policy easing, and lingering inflationary pressures may hinder gold's upward momentum in the near term.
Technical Analysis: The Bollinger Bands are narrowing, and gold is gradually forming a minor correction after reaching new highs earlier in the session. There is a high likelihood that the uptrend will continue from the nearest support area.
From a technical standpoint, the situation is complex as it is challenging to identify strong reversal zones while the price is trading in an uptrend. In such a scenario, attention should be paid to support levels to sustain growth, as well as local resistance areas for potential upward breakthroughs.
International Market Insights:
Gold prices regain upward momentum, driven by central bank buying activity in Asia.
A recent report reveals that the People's Bank of China added 160,000 ounces of gold to its reserves in March. Turkey, India, Kazakhstan, and some Eastern European countries have also been purchasing gold this year.
Senior analyst Ricardo Evangelista from ActivTrades attributes the recent uptrend in gold prices over the past two months to increasing political instability concerns and speculation related to the timing of monetary policy easing by the Federal Reserve.
According to the CME FedWatch tool, traders are currently pricing in a roughly 60% chance of a Fed rate cut in June.
Conclusion: The upward trend of gold is expected to continue until the end of this year due to safe-haven demand amid economic recession fears and ongoing conflicts.
However, a strong US dollar, rising bond yields, difficulty in Fed monetary policy easing, and lingering inflationary pressures may hinder gold's upward momentum in the near term.
Technical Analysis: The Bollinger Bands are narrowing, and gold is gradually forming a minor correction after reaching new highs earlier in the session. There is a high likelihood that the uptrend will continue from the nearest support area.
From a technical standpoint, the situation is complex as it is challenging to identify strong reversal zones while the price is trading in an uptrend. In such a scenario, attention should be paid to support levels to sustain growth, as well as local resistance areas for potential upward breakthroughs.
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