Gold price rise as Israel hits Rafah.
On Monday, the gold price (XAUUSD) gained strength. The lower US dollar (USD) and further increasing geopolitical tensions. In the Middle East provide some support for the yellow metal. Longer term, the precious metal may benefit from rising central bank demand for gold.
The speeches of Federal Reserve officials Bowman, Mester, and Kashkari on Tuesday will be widely monitored.
Nonetheless, smaller betting on the Federal Reserve (Fed) rate drop this year. And Fed officials’ hawkish tone may impose some selling pressure on XAUUSD, making gold less appealing as a store of value as interest rates increase.
Banks in the United States will be closed on Monday owing to the Memorial Day vacation. XAU traders will take more clues from the Fed’s address on Tuesday. Which includes Michelle Bowman, Loretta Mester, and Neel Kashkari. On Thursday, the first reading of the US Gross Domestic Product (GDP) for the first quarter will be released, which is expected to grow by 1.5%. The stronger-than-expected news may strengthen the dollar and weigh on USD-denominated gold.
Daily Market movers: Gold pricing attracts some buyers amid geopolitical uncertainties.
The Ministry of Health According to CNN, Israeli air strikes on a displaced people’s camp in Rafah on Sunday killed at least 35 Palestinians and injured scores more.
According to World Gold Council data, the price of gold has climbed by more than 16% year to date, reaching a record high of more than $2,400 per ounce in May.
US Durable Goods Orders increased by 0.7% MoM in April. Following a downward revision of 0.8% in March. Exceeding expectations of -0.8%.
The University of Michigan Consumer Sentiment Index rose to 69.1 in May from 67.4 in April. Exceeding the market consensus of 67.5. Inflation estimates for one year increased slightly to 3.3% from 3.2%, but five-year inflation expectations fell to 3%.from 3.1%.
UBS analysts have increased their gold price projection to $2,600 by the end of 2024. Citi experts expected that gold would reach $3,000 per ounce within the next six to eighteen months.
According to Reuters, XAU imports to India, the world’s second largest gold consumer, could fall by roughly a fifth this year as high prices encourage retail buyers to swap old jewellery for new goods.
