Gold is forecast to continue to decline deeply

2024年5月17日

Gold prices steadied in Asian trading today after posting strong overnight gains as some mild inflation data dragged the dollar to a one-month low and raised expectations of a rate cut. capacity.

The yellow metal has now returned to record highs reached in May, as traders bet more that the US Federal Reserve (FED) will start cutting interest rates as soon as September. The dollar fell sharply on Wednesday on this view, which should benefit overall metal prices.

Gold prices are up more than 1% from Wednesday after data showed US consumer price index inflation fell in April from March, while core CPI also fell from the previous month.

The figures, followed by weaker-than-expected retail sales data, raised hopes that inflation will ease in the coming months, giving the Fed more confidence in starting to cut interest rates.

The CME Fedwatch tool shows traders are pricing in a higher likelihood of a 25 basis point cut in September, at nearly 54%.

High interest rates push up the opportunity cost of investing in gold and other precious metals because they do not bring direct profits. The yellow metal could also benefit from increased safe-haven demand if the US economy cools further this year.

2024年5月17日

註釋

💲XAUUSD SELL 2375 - 2378💲

💰 TP1 2368
💰TP2 2355
❌ SL 2385