Gold price forecast are expected to rise for a second week in a row. This is because many people believe the Federal Reserve will cut interest rates soon. In April, U.S. prices for goods only went up a little, which makes a rate cut more likely. The slow growth in retail sales also hints that consumer spending is not strong, which could lead to changes in policy.
Inflation and Consumer Prices: What’s Happening?
In April, the Consumer Price Index (CPI) went up by 0.3%. This is less than the 0.4% increase in the two months before. This shows that inflation might be slowing down. Over the last year, the CPI rose by 3.4%, which is slightly lower than March’s 3.5% rise. Housing and gas costs caused most of this increase, but food prices stayed steady. The core CPI, which does not include food and energy, also increased by 0.3%, showing inflation still affects things like healthcare.
How Economic News Impacts the Market
The chances of a Federal Reserve interest rate cut have risen to 73%, up from 69%. The Federal Reserve has kept interest rates between 5.25% and 5.50% but is cautious due to mixed economic signs. Experts believe inflation will slowly decrease to the Fed’s target of 2%, especially as the job market slows down.
Global Demand and Supply Support Gold Prices
Strong demand from China’s retail market and efforts to stabilize their property market have helped gold price forecast go up. However, central banks, including China’s, have slowed down their gold buying in April because gold prices reached high levels.
Gold Price Outlook: What to Expect
With interest rate cut expectations likely and continued demand from markets like China, gold prices are expected to keep rising. Though inflation is still a worry, the chance of easier monetary policies makes gold’s outlook positive. Traders expect prices to stay high as they wait for further actions from central banks.
Gold Price Movement: What Technical Analysis Shows
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Gold price forecast (XAU/USD) is rising this Friday, supported by a key point at $2354.47. The 50-day moving average, now at $2288.35, and support at $2277.34 are helping the price go up. If this trend continues, traders will aim to break resistance at $2397.52 and possibly reach $2497.12 and $2431.59.
Conclusion:
Gold prices are increasing due to a mix of economic factors and strong demand. As inflation trends eases and the chance of a rate cut grows, the future looks good for gold. Keep an eye on price trends and market changes. For more updates, visit Daily Gold Signal or check the latest Daily Gold Update.
