Gold extends the price range against the backdrop of divergent news.
The latest U.S. inflation data forced market participants to revise their interest rate cuts forecasts and caused a fall in gold prices.
Despite a slight easing in inflation in April, it is still well above the target of 2%. Therefore, the U.S. central bank’s meeting in June is projected with a probability of more than 90% to keep rates unchanged.
Gold prices plummeted in yesterday's trading session. Today, prices are around the level of $2011 per ounce. Investors’ fears about economic growth slowdown and a maturing banking crisis support the demand for safe-haven assets and it is confirmed.
From January to April this year, investors purchased 302 tons of gold bullions. They also bought $18.4 billion gold coins. These figures exceed the five-year average by 14%, according to the World Gold Council.
The preference was given to gold coins with a demand of 96.5 tons. This is 14% higher than last year’s figures. Demand for gold bullions declined 1% over the year to 181.9 tons.
Gold confirms its safe-haven status. Despite the two-day downtrend, the price is still in an ascending widening channel on the H4 timeframe.
At the end of the week gold may continue to fall in price, mainly due to the fixation of long positions, and slide to the psychological level of 2000, near the ascending support line.
Stochastic indicator has reached the oversold area. Exit of moving from the zone will be a signal of price movement towards upward resistance.
The best point to buy gold is around the level of $2000 per ounce.
Signal:
Buy around the level of 2000.00.
The target is at the level of 2045.00.
Part of the profit should be fixed at the level of 2020.00.
A stop-loss should be placed at the level of 1980.00.
The bullish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.
This content is for informational purposes only and is not intended to be investing advice.
