Gold market update (XAU/USD) saw slight declines around $2,310 on Thursday, staying within a range of $2,270 to $2,450. This came after a rise due to US data showing lower inflation, which reduced expectations for immediate interest rate hikes and boosted Gold’s appeal.
The US Federal Reserve’s cautious approach after Wednesday’s meeting tempered optimism. Fed Chair Jerome Powell emphasized a data-driven strategy for future rate changes, contrasting earlier hopes for faster rate cuts.
CPI Data Impact
Gold reacted quickly to May’s US Consumer Price Index (CPI) report, which showed steady monthly prices and a slower annual increase, below what economists predicted. This led to a Dollar drop, which usually benefits Gold.
Fed’s Economic Outlook
Despite expectations that the Federal Reserve would cut rates, they opted to maintain current rates and revised down their projections for future cuts in their Summary of Economic Projections (SEP).
Technical Analysis
Technical analysis reveals that Gold shows potential signs of developing a bearish Head-and-Shoulders pattern on the charts. This pattern typically indicates a potential reversal in the current upward trend. The formation includes identifiable peaks labeled as the “head” and two “shoulders,” with a neckline around the critical support level of $2,279. If Gold prices break below this neckline, it could validate the pattern and signal further downside momentum. Traders and investors are closely monitoring this technical setup, as a confirmed breakdown could suggest a shift towards lower price levels in the near term.
For daily updates on Gold, visit Daily Gold Signal. For more detailed market analysis, explore the Daily Gold Update category.
