Source : FXS NEWS | GOLDCeylon | 18.05.2024
• Gold breaks above $2,400, nearing all-time high of $2,431.
• Lower April inflation in the US supports Gold’s rally, despite rising Treasury yields.
• Fed officials remain cautious, with December 2024 rate cut expectations slightly adjusted to 35 bps.
Gold’s price skyrocketed during the North American session ahead of the weekend as XAU/USD traded above $2,400, posting gains of more than 1.5% amid higher US Treasury bond yields. The non-yielding metal extended its advancement and threatened to crack the all-time high of $2,431.
A lower April inflationary reading in the United States (US) sponsored Gold’s leg up above the $2,400 mark, although US Treasury yields climbed. However, the Greenback is battered across the board and tumbled some 0.03%, according to the US Dollar Index (DXY), standing at 104.45.
Technical analysis: Gold price to extend its rally toward $2,500
Gold price’s bullish bias remains intact as the golden metal resumed its uptrend. Gold buyers gather strength with the momentum on their side as the Relative Strength Index (RSI) stays in bullish territory.
Therefore, the most likely scenario is that XAU/USD might test the all-time high of $2,431. Once cleared, the next stop would be the $2,450 mark, followed by the psychological $2,500 figure.
Conversely, if XAU/USD retreats below $2,400, that could expose the May 13 low at $2,332, followed by the May 8 low of $2,303. Once those levels are surpassed, the 50-day Simple Moving Average (SMA) at $2,284 will be up next.
Published by GOLDCeylon
