Gold price update: $2,000 per ounce support is unwavering prior to inflation. US rate estimates continue to point to 75 bps of reductions in the current year
Gold maintains support and continues to rise.
According to last week’s US Jobs Report, employees’ incomes continued to increase and the US jobless rate decreased to 3.4%. It matched a five-decade bottom. Following the release of Friday’s NFP data, traders revised their projections for US interest rates, which temporarily pushed the US dollar upwards.
However, this gold move was swiftly reversed. As investors began pricing in an array of rate reductions for the current year and the following. According to the most recent CME Fed Fund rate forecasts, the US Fed will decrease rates by 75 bp this year and a further 125 towards the end of 2024.
The market will gain more clarity on US pricing pressures, including consumer and producer. This week as a result of significant US inflation data, and on Friday. The Michigan Consumer Sentiment poll. A frequently watched indicator of how individuals view their personal financial status will be released.
Economic Activity Schedule for May 10
Gold is currently resuming its ascent toward an old level of horizontal resistance around $2,032/oz after rebounding from support near $2,000/oz. Beyond this point of resistance, at $,2050/oz, It is another a bit deeper area of barrier that may be quite difficult to overcome before the US inflation figures. The 20-DMA continues to hold the sell-off from last Friday, and all three moving averages are still in the green. The CCI indication points to a somewhat, but not significantly, overvalued market.
Investor’s Trading Positioning
According to statistics from retail traders, 1.19 investors are net long for every single short investor, or 54.27% of all traders. Investors who are net-long are up 2.23% from Monday while dropping 14.73% from the prior week. While those who are net short are up 8.06 percent from Monday and up 24.78% from the previous week.
