GOLD moves sideways ahead of Fed's favorite inflation dataDuring the trading session on the Asian market on Friday (May 31), spot gold decreased slightly, currently at 2,339 USD/ounce. On this trading day, investors will receive the most important economic data of the week, US PCE inflation data, which is expected to stimulate the market trend.
Gold prices recovered some of Wednesday's losses on Thursday after the US gross domestic product (GDP) showed the economy was slowing. US GDP data has revived hopes that the Federal Reserve may cut interest rates later this year.
Data released by the US Department of Commerce on Thursday showed that the US quarterly real GDP rate in the first quarter was 1.3%, below the previous baseline value of 1.3%. .6%, reflecting lower-than-expected consumer spending.
Personal spending, the main growth driver of the US economy, increased by 2.0%, compared to the previous initial value of 2.5%.
The U.S. Department of Labor reported Thursday that 219,000 people filed for unemployment benefits in the week ended May 25, compared with expectations of 218,000 and a previous figure of 215,000.
U.S. economic growth was slower than in the fourth quarter of last year, suggesting that higher borrowing costs set by the Federal Reserve are having an impact on the economy. Meanwhile, the US Department of Labor revealed that the number of people applying for unemployment benefits is increasing. These two factors have weakened the Dollar in the short term.
Today (Friday), US personal consumption expenditure (PCE) price data for April will be released.
Surveys show that the US PCE price index in April is expected to increase 0.3% monthly and increase 2.7% year-on-year.
In terms of more important core data, surveys show that the US core PCE price index for April is expected to increase 0.3% month-on-month and 2.8% year-on-year. .
As the Fed's preferred measure of inflation, year-over-year changes in the core PCE price index have a larger impact on policymakers which in turn impacts the underlying trend of gold prices.
Analysis of technical prospects for OANDA:XAUUSD
Technically, gold is still mainly moving sideways due to the lack of a fundamental impact to create a surge, but overall, it has the conditions to decrease in price due to price activity below EMA21 and an uptrend. in the medium term was broken before.
Although the recovery from the technical level of 2,324 USD was noticeable to readers in yesterday's edition, it is also limited by the EMA21, and for gold to be eligible to continue its recovery, it needs to at least reach Price activity is above the 21-day moving average (EMA21).
On the other hand, gold is likely to fall more towards $2,305 – $2,300 once $2,324 is broken below.
During the day, the technical trend of gold price leans more towards the possibility of price decline with notable levels being listed as follows.
Support: 2,324 – 2,305 – 2,300USD
Resistance: 2,345 – 2,353USD
🪙SELL XAUUSD | 2376 - 2374
⚰️SL: 2380
⬆️TP1: 2369
⬆️TP2: 2364
🪙BUY XAUUSD | 2306 - 2308
⚰️SL: 2301
⬆️TP1: 2313
⬆️TP2: 2318