Gold Bulls Surge Again! Gold Price Hits Near One-Month High, Industry Chief Analyst: Short-Term Outlook Bullish
In the Asian session on Thursday, May 16th, spot gold continued its upward trend from yesterday, with prices reaching a high of $2397.44 per ounce, marking a new high since April 19th. FXStreet's Chief Analyst, Valeria Bednarik, provided insights into the technical outlook for gold.
Bednarik pointed out that gold prices rebounded after the release of the US CPI report. With a recent bullish sentiment, gold prices may soon test the key level of $2400 per ounce.
The ICE US Dollar Index closed sharply down by 0.66% at 104.31 on Wednesday. Spot gold closed significantly up by $27.55, or 1.2%, at $2385.28 per ounce on Wednesday.
A report released by the US Bureau of Labor Statistics on Wednesday showed that after seasonal adjustments, the US Consumer Price Index (CPI) rose by 3.4% year-on-year in April, in line with expectations, compared to a 3.50% increase in March.
The US CPI rose by 0.3% month-on-month in April, below the expected 0.40%, following a 0.40% increase in March. This marked the first slowdown in the US CPI inflation rate in six months.
Jason Pride, Director of Investment Strategy and Research at boutique wealth management firm Glenmede, mentioned that these inflation data provide a basis for the Federal Reserve to consider rate cuts later this year.
Phillip Streible, Chief Market Strategist at Blue Line Futures, noted that the Consumer Price Index data "may be an early sign that inflation will cool over time, and the Federal Reserve will cut rates for the first time."
Gold Short-Term Technical Outlook
Bednarik noted that the daily chart for gold shows bullish control over prices, although the potential for a stronger rebound remains uncertain. Technical indicators are rising within positive levels, with uneven strength, but at the same time, technical indicators are at new multi-week highs, supporting a bullish continuation to some extent. Additionally, gold prices are finally above the 20-day Simple Moving Average (SMA), which provided short-term support near $2335 per ounce earlier this week. Finally, the 100-day SMA and 200-day SMA are significantly below the current gold price levels, accelerating upwards, reflecting renewed buying interest.
Bednarik added that the short-term outlook for gold is bullish. Technical indicators on the 4-hour chart are firmly rising, with the Relative Strength Index (RSI) entering overbought territory, showing no signs of giving up. Furthermore, gold prices have rebounded significantly from the bullish 20-period SMA and gained upward traction above the similarly bullish 100-period SMA and 200-period SMA. Despite widespread signs of risk appetite, gold prices may touch the $2400 per ounce level in the coming trading sessions.
Overall, the recent surge in gold prices, driven by technical factors and market sentiment, indicates a bullish short-term outlook for the precious metal, with potential for further upside towards key resistance levels.
In the Asian session on Thursday, May 16th, spot gold continued its upward trend from yesterday, with prices reaching a high of $2397.44 per ounce, marking a new high since April 19th. FXStreet's Chief Analyst, Valeria Bednarik, provided insights into the technical outlook for gold.
Bednarik pointed out that gold prices rebounded after the release of the US CPI report. With a recent bullish sentiment, gold prices may soon test the key level of $2400 per ounce.
The ICE US Dollar Index closed sharply down by 0.66% at 104.31 on Wednesday. Spot gold closed significantly up by $27.55, or 1.2%, at $2385.28 per ounce on Wednesday.
A report released by the US Bureau of Labor Statistics on Wednesday showed that after seasonal adjustments, the US Consumer Price Index (CPI) rose by 3.4% year-on-year in April, in line with expectations, compared to a 3.50% increase in March.
The US CPI rose by 0.3% month-on-month in April, below the expected 0.40%, following a 0.40% increase in March. This marked the first slowdown in the US CPI inflation rate in six months.
Jason Pride, Director of Investment Strategy and Research at boutique wealth management firm Glenmede, mentioned that these inflation data provide a basis for the Federal Reserve to consider rate cuts later this year.
Phillip Streible, Chief Market Strategist at Blue Line Futures, noted that the Consumer Price Index data "may be an early sign that inflation will cool over time, and the Federal Reserve will cut rates for the first time."
Gold Short-Term Technical Outlook
Bednarik noted that the daily chart for gold shows bullish control over prices, although the potential for a stronger rebound remains uncertain. Technical indicators are rising within positive levels, with uneven strength, but at the same time, technical indicators are at new multi-week highs, supporting a bullish continuation to some extent. Additionally, gold prices are finally above the 20-day Simple Moving Average (SMA), which provided short-term support near $2335 per ounce earlier this week. Finally, the 100-day SMA and 200-day SMA are significantly below the current gold price levels, accelerating upwards, reflecting renewed buying interest.
Bednarik added that the short-term outlook for gold is bullish. Technical indicators on the 4-hour chart are firmly rising, with the Relative Strength Index (RSI) entering overbought territory, showing no signs of giving up. Furthermore, gold prices have rebounded significantly from the bullish 20-period SMA and gained upward traction above the similarly bullish 100-period SMA and 200-period SMA. Despite widespread signs of risk appetite, gold prices may touch the $2400 per ounce level in the coming trading sessions.
Overall, the recent surge in gold prices, driven by technical factors and market sentiment, indicates a bullish short-term outlook for the precious metal, with potential for further upside towards key resistance levels.
