Gold MARKET VIEW Weekly changes: XAUUSD +5.72% On Monday, g | GOLD SIGNALS XAUUSD

Gold

MARKET VIEW

Weekly changes: XAUUSD +5.72%

On Monday, gold went down to 1,682 USD, its lowest since 31 March. This sharp fall happened mainly due to strong nonfarm payrolls data that renewed early Federal Reserve taper bets.

Nevertheless, the publication of the U.S. consumer price data helped gold recover to 1,779 USD by Friday since the yellow metal is seen as a hedge against inflation. Investors acknowledged the rebound but noted that gold had now stuck in a 1,760–1,780 USD range and said it needed to do more to return on a bullish track. Traders are looking for more hints from the Federal Reserve on its monetary policy plans.

BULLISH TRIGGERS

Ongoing COVID-19 disruption means it is more likely that central banks globally will continue to provide stimulus programs, which support higher gold prices in the long term. In the short term, gold may hold positions between 1,760 USD and 1,800 USD.

BEARISH TRIGGERS

Inflationary pressure will be temporary, and gold will trend lower over expectations for the rise of real bond yields and the U.S. dollar strengthening. The Fed rate hike will increase the opportunity cost of holding non-yielding gold while boosting the greenback.



Join with trust @XAUUSD_03