Gold analysis: Hopes for lower rates pressed gains
The popular yellow metal Gold went up early today due to expectations that the U.S. Federal Reserve may not increase interest rates in the near future.
However, a rise in U.S. Treasury yields after an active start in April’s consumer prices restricted any profits made.
XAU/USD gained approximately 0.98% at $1,816.60 per ounce following a drop of more than 1% in the previous trading sitting. All that while U.S. gold futures slid 0.3% to $1,817.39.
The Fed, though, has been repeating the statement that inflation will be so temporary that there is no need to emphasize the need regarding altering interest rates.
Yesterday U.S. consumer prices rose the most in more than a decade in April, raising anxieties covering increasing inflation.
According to the famous Ichimoku clouds system, the price in the 1h timeframe seems to be heading down and a Kumo break out signal is already confirmed by the chikou span line out of the Kumo cloud.
Any potential bearish opportunity should be considered if the price breaks the recent lows near the 38 of the Fibonacci level.