Both the macroeconomic and geopolitical scenarios remain extremely complicated. Inflation continues to surge in all the major economic areas, while the rally of energy commodities doesn’t seem to be over yet.
In the current situation, gold has reached a one-month top of $1,873, before slowing down in during last Friday’s trading session, after the U.S. non-farm payrolls figures were released, slightly above forecasts.
Bullion is still being traded above $1,850, despite expectations for further rate hikes by the Federal Reserve in the next few months. The new week has started in green, with gold gaining a few dollars. This can be seen as a confirmation of investors’ interest in this ‘safe-haven’ asset.
Live Gold Price – $/oz
From a technical perspective, the last twenty days have seen an improvement in the scenario, as gold regained momentum. The bearish impulse which pulled the price down to a minimum below $1,800 in mid-May, seems to be over. Already, we have seen an accumulation phase, with a clear surpass of the peak reached last week ($1,873) opening up space for a quick recovery to $1,900.
Analysing the macroeconomic calendar of the week ahead, we can expect the European Central Bank meeting on Thursday the 9th of June to be the main event. Miss Lagarde is expected to offer some more details to investors about the process of rate hikes which will probably begin in mid-July, with the first rate hike after more than a decade. On Friday more crucial data will be announced, with the release of the US core CPI, forecasted by analysts to be at 0.5%.
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