Prices for Gold: Gold Price Analysis: USD/XAU is steady around $1850s while bulls are hopeful of a rise towards $1900. Details
Posted Sunday, May 29, 2022 3:11 (AM) by- Kevin Smith
Prices for Gold: Gold Price Analysis: USD/XAU is steady around $1850s while bulls are hopeful of a rise towards $1900.

Prices for Gold: Gold Price Analysis: USD/XAU is steady around $1850s while bulls are hopeful of a rise towards $1900.

  • Gold hopes to close the week with good gains of 0.37 percent.  
  • US Core PCE eases from 5.1 percentage YoY, however, it remains at 40-year highs. is the Fed stop?
  • The Gold Price Analyse (XAU/USD) If bulls in Gold claim $1870, a shift toward $1900 could be on the menu.

The spot price of gold (XAU/USD) rises in the New York session but is yet to reach the highs of the week and is stuck to the 20-day moving average (DMA) in the $1848.48 region. As of the time of this writing the XAU/USD price is $1852.28 one troy ounce.

US Core PCE came in line with expectations, but was lower than the reading in March.

European and US stocks continued to climb amid optimism in the market. It was reported that the US Commerce Department released the Core Personal Consumption expenditure (PCE) which is the Fed's most popular inflation gauge. The numbers were better than anticipated and show that inflation is still high but are not quite at 5.1 percent mark, which is 4.9 percent YoY.

As inflation seems to be decreasing from its forty-year highest levels, will the Fed increase its monetary policy at a lower rate? In the meantime, the Minutes of the May meeting of the Fed indicated that all its members voted to increase rates by 50bps during the two consecutive meetings on monetary policy.

Meanwhile in the meantime, US Dollar Index, a measure of the value of the buck in comparison to. its peers, is reducing some of the losses that started early and is increasing by 0.07 percent, settling at 101.827. In the event that it fails to get back the level of 102.500 could open the way to a test of the low on April 24 at 99.818.

Contrary to USD growth, US Treasury yields showed that investors are stepping back from overpricing US central bank's rate hike expectations. It is interesting to note that the US 10 year Treasury yield has remained almost even throughout the present, with only minor losses and a decline of 2.743 percent, which is a good sign for the non-yielding metal that is benefited by lower yields.

In addition In the meantime, there was a surprise when the US economic docket released additional information. Consumer spending grew 0.9 percent last month, and beat estimates because consumers increased their purchases of both goods and services, a signal that could help sustain US economic growth during quarter, despite growing fears of recession.

The Gold Price Analyse (XAU/USD) The outlook for the future of technical analysis

In the price action of Friday, Gold has recovered that 20-day average (DMA) in the range of $1848.42 and is trading just above 1850. It is worth noting that the bears on XAU/USD haven't been able to lower prices below the 200-DMA. This suggests that the selling pressure is lessening, as evidenced by oscillators. In the meantime, the Relative Strenght Index (RSI) at 45.56 is beginning to move upwards. Although it is still in the zone of bearishness, an upslope keeps Gold investors hopeful of pushing prices up to $1900.

The XAU/USD initial resistance is $1869.61. A break above it would push the spot to the convergence of the top band of Bollinger's band and the lows of March in the $1889.91-1891.08 region. After clearing the next stop will be $1900.

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