24K99 News On Friday (May 24), gold recovered some of its losses and was reported at $2,337. Although maintaining high US interest rates for a long time may put pressure on gold in the short term, favorable signals are coming from China. The news is that the Chinese private sector will import 543 tons of gold in the first quarter of 2024. Prior to US durable goods orders and the Michigan Consumer Confidence Index report, market analysis said that the bearish divergence became the focus of gold prices.
As expectations for the Fed to cut interest rates in September gradually weaken, the upside for gold may be limited. However, the inflow of safe-haven funds brought about by the heightened geopolitical tension in the Middle East may boost the price of gold.
Gold investors will get more clues from the Federal Reserve's speech, and the Federal Reserve's Waller will speak on Friday. The hawkish rhetoric of Federal Reserve policy makers could further weigh on gold. Notably, higher interest rates usually hurt the price of gold because it increases the opportunity cost of investing in gold. In addition to this, US durable goods orders and the Michigan Consumer Confidence Index will also be announced.
In the week ending May 18, the number of first-time jobless claims in the US fell by 8,000 to 215,000, below expectations of 220,000 and 223,000 the week before.
The initial value of the US S&P global manufacturing PMI rose from 50.0 in April to 50.9 in May. The service sector PMI rose from the previous value of 51.3 to 54.8 in May. Both figures were better than expected.
The US S&P Global Composite PMI Index jumped from 51.3 in April to 54.4 in May, exceeding market expectations of 51.1 and hitting the highest level since April 2022.
Atlanta Federal Reserve Chairman Rafael Bostic said he still believes there is upward pressure on inflation, adding that the Fed may need to be more patient to avoid the economy heating up.
According to a recent analysis by Jan Nieuwenhuijs of Gainesville Coins, the Chinese private sector imported 543 tons of gold in the first quarter of 2024, and the People's Bank of China (PBoC) increased its gold reserves by 189 tons during the same period.
Gold imports from India, the world's second-largest consumer of gold, could drop by about 20% by 2024, as high prices encourage retail customers to exchange used jewelry for new products, according to Reuters.
Gold technical analysis
FXStreet analysts said that the price of gold weakened on the same day. Gold's bullish sentiment on the daily chart remains unchanged as the price of gold remains above the key 100-period exponential moving average (EMA).
However, as the price of gold reached a higher high on May 20, gold formed a bearish divergence, but the RSI indicator has formed a lower high, indicating that the momentum is slowing down, and the possibility of price correction or consolidation cannot be ruled out.
The upper limit of $2,428 on the Bollinger band is a direct resistance level for gold. If gold resolutely breaks through this level, it may continue to climb to an all-time high of $2,450 and break through the psychological barrier of $2,500.
On the other hand, the first downside target will appear at the May 13 low of $2,285. If the price of gold continues to fall, it could fall to the lower Bollinger band of $2,267. Further downward, the next level of contention is the 100-period EMA of $2,217. #黄金技术分析 #
(Source: FXStreet)