Gold price today (May 28): Increases simultaneouslyDear traders! Gold prices today continued their upward trend with spot gold increasing by 15 USD to 2,350.7 USD/ounce. Gold futures last traded at 2,352.5 USD/ounce, up 18 USD compared to yesterday morning.
The yellow metal price increased slightly at the beginning of the week as investors expected an important inflation report published later this week that would change the US Federal Reserve's (Fed) view on the possibility of cutting cuts interest rate.
Recently, the Fed's positive stance on interest rates has put great pressure on precious metals markets. Personally, I still maintain faith in the bearish trend of gold prices to continue in the near future as gold faces more hawkish comments from Fed officials and better-than-expected US economic data.
While gold is often considered a hedge against inflation, higher interest rates increase the opportunity cost of holding gold. Currently, investors are waiting for the personal consumption expenditures (PCE) price index, the US Central Bank's preferred inflation measure, expected to be released on Friday for more clues about the Fed's future policy direction.
In the current environment, the gold market will be sensitive to inflation data. Accordingly, if the report shows downward price pressure, it may arouse hopes of cutting interest rates by the Fed and boost gold prices. On the contrary, if PCE is higher than market forecasts, it will deal another blow to expectations of Fed interest rate cuts and cause gold prices to fall even deeper.
In the short term, use Fibonacci technical analysis signals if the downward momentum continues due to profit-taking pressure. The next recovery point for gold is 0.5 - 0.618, more clearly around the 2,380 USD area as shown on the analysis chart. It is expected that the decline could bring prices to the support level of $2,300/ounce or lower.