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Home » Gold prices fell 1.55% in May first Week

Gold prices fell 1.55% in May first Week

GOLD PRICE OUTLOOK | GOLDCeylon 2024.05.06

#gold #goldprice #goldrate

• Gold prices fell 1.55% this week, briefly touching their lowest level since early April

• The current downward correction shows potential for further extension despite positive fundamentals

• This article explores XAU/USD’s technical outlook for the coming days and weeks

Gold dropped for the second straight week, with prices settling just above the $2,300 threshold heading into the weekend. This occurred against a backdrop of relatively moderate volatility following key market developments, notably the Federal Reserve’s monetary policy announcement midweek and the release of the U.S. employment report on Friday.

#goldceylon #gold #rate

Bullion’s retreat caught many traders off guard, as they had anticipated a stronger response amidst falling U.S. bond yields, which fell sharply after Fed Chair Powell dismissed the idea of resuming rate hikes and indicated the next move is still likely to be a cut, despite renewed inflation worries. This dovish stance injected a sense of optimism into the market, boosting risk assets at the expense of defensive plays.

Even the U.S. jobs report, arriving weaker than anticipated and emboldening FOMC easing wagers, failed to prop up the precious metal. While traders may find the market’s reaction perplexing, it’s important to acknowledge that the frequently dominant inverse relationship between gold and rates significantly weakened earlier this year, with both going up at the same time.

Published by @GOLDCeylon

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