The American dollar is able to hold its ground better thanks to the market’s mixed feelings, which has confirmed the price of gold’s downward trend for three days running. The yellow metal is utilizing the situation after a two-week break.
After some officials postponed the eagerly anticipated interviews scheduled for Friday at the start of the following week, concerns about the United States debt ceiling expiring could strengthen the bearish trend.
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In a similar vein, there are concerns that the collapse of regional US bank deposits will result in an economic slowdown. The optimism of US politicians and the hopes for a return to Chinese inflation, however, are posing a threat to the yellow metal bears.
The Federal Reserve’s most recent concerns about US inflation may be supported by additional information.
In addition to the signs of US inflation, it will be crucial to monitor next week’s retail sales and Jerome Powell’s speech for clues about how the price of gold will change in the future. A rise in recession fears will likely have a positive impact on gold prices in the future.
Since the main IPC increased by only 0.1% in April, the lowest rate since February 2021 and far below the forecasted 0.4%, the most recent data on Chinese inflation may have provided the final bearish input on the price of gold.
An eye to the chart
The Chinese IPP data decreased for the seventh month in a row and showed the biggest decline since May 2020. There have been persistent rumors about the strength and speed of the Chinese recovery, but the most recent inflation data have likely increased the level of uncertainty.
Gold is now trading at $ 2,008.42, downward and very near the symbolic value of $2,000 per ounce.
Will the bears take control next week?
Check charts at tradingview.com
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