· Gold prices climbed on Thursday, aided by growing U.S. inflationary pressure, although gains were curbed as the dollar rebounded and U.S. Treasury yields rose after Federal Reserve policymakers hinted at a possible shift in future policy.
· Spot gold was up 0.3% at $1,875.74 per ounce by 0525 GMT. U.S. gold futures eased 0.3% to $1,876.20.
· “What’s driving gold and will continue to drive it higher from here is the fact that inflation is now very ingrained. But the Fed doesn’t seem to see it,” ED&F Man Capital Markets analyst Edward Meir said.
· “However, gold is in a bit of a tug-of-war, pulled lower by the stronger dollar and an uptick in the U.S. 10-year rates.”
· Gold prices rose more than 1% on Wednesday to their highest since Jan. 8, but pared most of the gains as the dollar index bounced off from a near three-month low and benchmark U.S. Treasury yields jumped after the Fed minutes.
· Fed minutes published on Wednesday showed “a number” of officials thought that if the recovery holds up, it might be appropriate to “begin discussing a plan for adjusting the pace of asset purchases”.
· Recent data showing a rise in prices in the United States and UK intensified concerns over inflation.
· “Weakening bond yield, building inflationary pressure and a softer dollar have brightened the prospects for gold investment demand,” ANZ analysts said in a note.
· “That said, the pandemic wave in India could severely impact the physical offtake of gold in Q2.”
· Spot gold may retest a resistance at $1,893 per ounce, according to Reuters technical analyst Wang Tao.
· · Gold opens up to new highs but resistance awaits
Gold has been one of the best markets to trade in 2021 due to big volatility and price action respecting all techs.
We can spot an ascending trend line which is clearly marking the uptrend. If we see a retracement then buyers will possibly show up at the POC zone. 1820-30. 1890 is currently resistance. If it breaks we should expect a test of 1900. However, as buying the dips is an option watch for a retracement then possibly go long.
· · Gold Price Forecast: XAU/USD looks to challenge three-month highs despite Fed’s tapering jitters
Gold price (XAU/USD) witnessed a volatile session on Wednesday, initially falling to the $1850 zone before rebounding firmly to renew three-month highs of $1890. The pullback, however, lost legs, as the gold price once again retraced towards $1860.
The price of gold bounced back towards the $1900 mark after a risk-aversion gripped markets on a massive collapse across the crypto board. Investors flocked to safety in the traditional safe-haven gold, as most major crypto assets lost as much as 30% of their value during the crash. However, gold price took a U-turn and retraced almost entire gains after the FOMC April meeting’s minutes revealed the board members’ readiness to kick start the tapering debate in the upcoming meetings. The US dollar rallied alongside the Treasury yields on slightly hawkish FOMC minutes, with the 10-year rates climbing to weekly highs at 1.67%.
Gold price is trending within a rising wedge formation on the four-hour chart, having recovered from troughs near the $1808 region.
Gold bulls have managed to defend the lower boundary of the wedge, now placed at $1861 while the resistance aligns at $1892.
The price remains on track to test the abovementioned rising wedge resistance, as the Relative Strength Index (RSI) continues to hold firmer above the midline.
Also, the fact that gold price trades comfortably above the 21-simple moving average (SMA) at $1866 adds credence to the additional upside.
However, a breach of the 21-SMA could put the wedge support at risk once again. A four-hour candlestick closing below the latter could negate the near-term bullish momentum.
The next target in sight for the sellers is seen at the upward-sloping 50-SMA at $1846.
· Palladium gained 0.9% to $2,894.14 per ounce, silver was steady at $27.76, while platinum rose 0.4% to $1,195.09.
· Biden to offer budget proposal on May 28
U.S. President Joe Biden will unveil the first detailed budget proposal of his term in office on May 28, a day later than originally planned, the White House said on Wednesday.
· EU agrees to open doors to vaccinated foreigners
European Union countries agreed on Wednesday to ease COVID-19 travel restrictions on non-EU visitors ahead of the summer tourist season, a move that could open the bloc's door to all Britons and to vaccinated Americans.
· German exports to United States, China jump in April
German exports to the United States jumped by more than 60% year-on-year in April to 10.1 billion euros, the statistics office said on Thursday, suggesting that Europe’s largest economy is benefiting from strong demand from abroad.
German exports to China, its second biggest sales market outside the European Union, rose by 16.3% year-on-year to 8.4 billion euros, the office said.
· New Zealand’s economic recovery from Covid is ‘a lot better than expected,’ says deputy prime minister
· Covid outbreaks in Asia could hit supply chains and raise U.S. inflation, says expert
Fresh waves of Covid-19 cases in major manufacturing hubs in Asia could hit global supply chains — and that could cause inflation to rise quicker in the U.S., a business consultant said Wednesday.
· China's industrial commodities slide after Beijing warns of market crackdown
China's main industrial commodities tumbled on Thursday after the government announced stepped-up measures to keep a lid on soaring raw material prices which threaten to undermine the country's economic recovery.
· China will strengthen its management from both supply and demand sides to curb “unreasonable” increases in commodity prices, and prevent the pass-through to the consumer, the cabinet said on Wednesday.
· China says U.S. warship illegally enters its territory in S. China Sea
China said on Thursday a U.S. warship had illegally entered its territorial waters in the South China Sea, the latest salvo in the two nations’ dispute over Beijing’s territorial claims in the busy waterway.
· Japan's exports jump most in decade as trade recovery perks up
Japan’s exports grew the most since 2010 in April while capital spending perked up on surging global demand for cars and electronics, lifting hopes that an improvement in trade could help lead the world’s third-largest economy back to growth.
Exports rose 38.0% in April from a year earlier, official data showed on Thursday, compared with a 30.9% increase expected by economists and following a 16.1% rise in March. That was the fastest gain since April 2010, led by U.S.-bound shipments of cars and car parts and Chinese demand for chip-making equipment.
· Taiwan COVID-19 cases rise again, but not dramatically
Taiwan reported 286 new COVID-19 cases on Thursday, a slight increase on the previous day that gave the health minister cause for a sliver of optimism that the situation was not dramatically worsening.
· Netanyahu, Gaza militants vow to fight on as Biden urges ‘de-escalation’
Israel and Gaza militants vowed to keep fighting after U.S. President Joe Biden urged Prime Minister Benjamin Netanyahu to seek a “de-escalation” on Wednesday on the path to a ceasefire in the 10-day-old conflict.
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