Gold seeing new yearly highs into the weekly close
Today, we want to have a look at Gold. Even though last week's Non-Farm Payrolls disappointed, and it took until Tuesday to see pullback against 1,325 USD, which we discussed in a recent technical analysis.
Last Wednesday, the precious metal took on serious bullish momentum again after the US Inflation data came in at 1.8% for May, up from a 5-month high in April - but below expectations of 1.9%.
As a result, expectations that the Fed will start cutting interest rates this year edged higher, as the Fed Watch Tool's prediction for next week's meeting now sees a 65% that the central bank doesn't move, while one week earlier we stood at nearly 85%.
In addition to the weak NFP reading last Friday, and Fed chairman Powell opening the door for a potential rate cut on June 4, another disappointing economic data set like the Retail Sales today could trigger another push higher in Gold up to the multi-year-highs around 1,365 USD.
A break higher, driven by a surprisingly dovish FED which goes already with a rate-hike next Wednesday, would mean a strong mid-term buy-signal which sees a projected target somewhere around 1,700 USD, and possibly even higher.
In general, the bullish picture in Gold on a daily time-frame stays active as long as we trade above 1,266 USD.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Last Wednesday, the precious metal took on serious bullish momentum again after the US Inflation data came in at 1.8% for May, up from a 5-month high in April - but below expectations of 1.9%.
As a result, expectations that the Fed will start cutting interest rates this year edged higher, as the Fed Watch Tool's prediction for next week's meeting now sees a 65% that the central bank doesn't move, while one week earlier we stood at nearly 85%.
In addition to the weak NFP reading last Friday, and Fed chairman Powell opening the door for a potential rate cut on June 4, another disappointing economic data set like the Retail Sales today could trigger another push higher in Gold up to the multi-year-highs around 1,365 USD.
A break higher, driven by a surprisingly dovish FED which goes already with a rate-hike next Wednesday, would mean a strong mid-term buy-signal which sees a projected target somewhere around 1,700 USD, and possibly even higher.
In general, the bullish picture in Gold on a daily time-frame stays active as long as we trade above 1,266 USD.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.