Spot gold may rise into $1,932-$1,953/oz range according to technical analysis
Gold is toying with a five-month high ahead of European and US data set to be revealed this week that could provide insight into the health of the world economy.
Gold retreated from its five-month high of $1,917 to just below $1,910.
The recent move down comes as the decline in the US dollar halted and a rally in the Treasury yields made up some ground.
While inflationary pressures remain on the horizon it appears the sentiment around the precious metal is still bullish.
US consumer prices jumped in April, easily surpassing the Fed’s 2% target, recording its largest annual gain since 1992.
“Gold prices are riding a very strong upward trend … this is against the backdrop of a falling U.S. dollar and also inflation concerns,” said Margaret Yang, a strategist at DailyFX.
“Perhaps another fundamental factor behind gold is the return of Chinese and Indian buyers. In the near-term, if gold can breach the $1,922 per ounce mark, it can open the room for further upside potential.”
Investors will be focusing on key US economic figures, including non-farm payrolls data due on Friday.
The Fed continues to reassert its view that the figures show a short-term trend, including the stimulus packages and supply-chain bottlenecks.
Spot gold may rise into $1,932-$1,953/oz range according to technical analysis by Margaret Yang.