Gold prices, denoted by XAU/USD, saw a modest increase of around three-tenths of a percent on Friday, hovering in the $2,380s range. This uptick was attributed to favorable economic indicators emerging from China, bolstering confidence in the world’s largest gold market.
Positive data from China provided a tailwind for gold prices, nudging them slightly higher by Friday. Trading in the $2,380s, the market sentiment was uplifted by indications of economic strength in China, a pivotal player in the global gold landscape.
Amidst a backdrop of mixed secondary data in the United States, gold prices inched up by three-tenths of a percent on Friday, settling in the $2,380s range. The optimism stemming from robust Chinese economic indicators contrasted with the nuanced economic landscape in the US.
Despite a mixed bag of economic reports from the United States, gold prices experienced a slight uptick on Friday, reaching the $2,380s mark. The positive momentum was primarily fueled by encouraging data from China, amplifying the appeal of gold as an investment option.
Gold’s trajectory inched upwards on Friday, with prices hovering around the $2,380s range, propelled by favorable economic indicators from China. In contrast, the release of varied secondary data in the US failed to significantly sway the market, leaving gold prices relatively stable.
Gold Prices Surge Following Positive Economic Data from China
Gold received a significant boost on Friday following the release of April’s Chinese Industrial Production data, which surpassed expectations with a remarkable 6.7% year-over-year increase. Economists had predicted a more conservative growth rate of 5.5%, making the actual figure a pleasant surprise and signaling a notable improvement from March’s 4.5% reading.
China’s Economic Growth Displays ‘Uneven’ Patterns
Despite Encouraging Statistics, Some Economists Cite ‘Uneven’ Growth in China” “Although the data shows signs of improvement, certain economists express doubt regarding the consistency of Chinese growth, labeling it as ‘uneven’.” “While the recent figures point towards positive momentum, skepticism remains among economists who observe ‘uneven’ patterns in Chinese growth.” “According to Tommy Wu, Senior Economist at Commerzbank, the latest activity data from April indicates a mixed landscape for growth in China, with investment and exports contributing positively while consumption lags behind, highlighting the ‘uneven’ nature of economic expansion.”
Fiscal Spending Emerges as Crucial Factor in Economic Strategy
Wu emphasizes the necessity of increased fiscal expenditure to maintain stable growth momentum. He highlights the Chinese government’s initiation of sovereign bond sales as a strategy to bolster spending. Wu underscores that the fulfillment of government spending plans will largely shape the country’s growth outlook.
Additionally, the government is actively addressing the housing crisis through multifaceted approaches. One such measure involves local governments and state-owned enterprises purchasing unsold homes to alleviate inventory pressure and support the struggling sector. Furthermore, the People’s Bank of China (PBoC) has relaxed regulations for first-time homebuyers by reducing the minimum deposit from 25% to 15% and eliminating the mortgage rate floor for both first and second home purchases
Minor Impact of US Tariffs Evident, Analysts Report
Wu suggests that the impact of US tariffs on electric vehicles (EVs) and solar panels is expected to be minimal. This assessment is based on China’s relatively low export volume of EVs to the US and the circumvention of high tariffs on Chinese solar panels through sales via intermediary nations.
Gold Price Trend: Ascending Channel Identified in Technical Analysis
Gold Price (XAU/USD) Retreats Near $2,400 Resistance Level” “The upward movement of gold prices (XAU/USD) stalls just shy of the $2,400 resistance, prompting a slight pullback.” “Despite nearing the $2,400 resistance level, gold experiences a modest retreat.” “Gold’s recent movement suggests it has been following an upward channel since hitting lows on May 2, indicating a bullish short-term trend with potential for further gains.
XAU/USD 4-Hour Chart Analysis
The Relative Strength Index (RSI) retreats from the overbought territory, signaling a renewed opportunity for further upward movement.” “If the price surpasses the $2,400 mark, it is anticipated to advance towards the subsequent resistance levels. These include $2,417, marking the April 19 high, and $2,430, representing the all-time high.” “Additionally, the medium and long-term charts, specifically the daily and weekly timeframes, exhibit bullish indicators, reinforcing the positive outlook for gold
