Key Points:
Current Trends and Projections:
Gold is experiencing a short-term downtrend, but recent price action suggests a possible correction.
If growth continues this week, gold may target the next resistance zone between 2369 and 2361.
Short trades could be considered within this resistance zone, aiming for a return to the Target Zone of 2300 to 2285.
Reversal Scenarios:
For a trend reversal and the creation of buying opportunities, gold must consolidate above the 2369 level.
Such a consolidation would indicate a shift in market sentiment and potential for further bullish movement.
Fundamental Factors:
Central banks have significantly influenced XAUUSD's growth through substantial physical gold purchases over the last six months.
The move away from the US dollar by various countries, in favor of national currencies and gold, is reshaping global financial reserves.
India's gold reserves increased dramatically in April 2024, reaching $12.706 billion.
Conversely, China has slowed its gold purchases despite an 18-month streak of reserve increases, highlighting the impact of rising gold prices on import decisions.
Economic Indicators and FOMC Policy:
Retail Sales in the US are projected to rise by 0.2% in May, which could bolster the US Dollar if it supports the Federal Reserve's higher interest rate stance.
Conversely, weaker-than-expected Retail Sales might pressure the FOMC to adopt a less restrictive policy, potentially leading to speculation about a Fed rate cut in 2024.
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