ConanForex

Gold broke the 2,400 USD mark and continued to rebound

Long
ConanForex Updated   
OANDA:XAUUSD   Gold Spot / U.S. Dollar
Hello dear friends! Let's explore the price action of gold after the recent days of major fluctuations!

Regarding developments and results last week: the international gold market received a lot of economic information from major economies such as the US, China, and Europe. In particular, the US announced producer price index data. (PPI) and consumer price index (CPI) April 2024. Looking at gold's volatility and fluctuation range this week, it is expected that this precious metal will return to record highs sooner than expected.

Conclusion on gold and trend: I am optimistic about gold next week. The USD is depreciating a bit along with Treasury bond yields going down. Additionally, technically based on tests last month and thus far, there are signs of acceptance above the $2400 price level. This opens the door to a possible increase to $2,500.

Overall, gold confirmed a trend change above the $2400 level that buyers actively defended on the basis of a bullish wave of realization. It is likely that the market will try to change the trend. At this point the realization phase will take shape. We await confirmation of a trend change with a view to further strengthening.
Comment:
After a series of inflation data released this week, the market will be quieter next week. Some data that may affect gold prices next week include:

Wednesday will see the release of US existing home sales for April, along with the FOMC minutes from the April and May monetary policy meeting.

On Thursday, markets will get S&P flash manufacturing and services PMIs, weekly jobless claims and US April new home sales.
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