Original title: Gold bulls explode! Gold just topped $1,950, silver soars more than 1% on the day
24K99 News At the end of the Asian market on Friday (May 26), the U.S. dollar index continued to weaken, and is now close to the 104.00 mark; spot gold continued to rise in the short term, and the price of gold just broke through the $1,950/oz mark, climbing more than $10 within the day.
(Source of spot gold 30-minute chart trend chart: 24K99)
FXStreet analyst Anil Panchal said gold prices had a corrective rally on Friday. Gold’s latest rally may have something to do with the dollar’s retreat from multi-day highs.
Panchal pointed out that if the price of gold breaks through $1,951 an ounce and maintains its upward trend, then the possibility of gold prices rising to the resistance of $1,967 an ounce cannot be ruled out. If $1,967/oz is overcome, the bulls may target levels around $1,971/oz.
According to the well-known financial website Economies.com, if the price of gold stays above the support area around $1,945.20 an ounce, it will push the price of gold higher and test the $1,977.25/ounce area first.
According to Bloomberg News, people familiar with the matter said that Republicans and White House negotiators are close to reaching an agreement on raising the debt ceiling and limiting federal spending for two years. The time to avoid a catastrophic U.S. default is shrinking.
The two sides have narrowed their differences in talks in recent days, but only tentatively agreed on details and a final deal has yet to be finalized, according to the people familiar with the matter, who spoke on condition of anonymity. Under the terms of the tentative deal, defense spending would allow for a 3% increase next year, in line with Biden’s budget request.
Affected by the above-mentioned news, the market risk appetite increased during Asian trading hours on Friday, and the dollar was hit, which stimulated the strengthening of gold prices. The recent impasse over the U.S. debt ceiling has provided momentum for the dollar to rebound.
House Speaker Kevin McCarthy told reporters Thursday morning local time that his deputy and negotiators for President Joe Biden had been working hard after midnight Wednesday and “made some progress.”
Rep. Kevin Hern, R-Okla., chairman of the Republican Studies Committee, told Reuters he thought a deal could be reached on Friday afternoon.
Meanwhile, U.S. President Joe Biden said on Thursday afternoon local time that negotiators were “making progress.”
Spot silver is stronger than gold. Silver just hit $23.00 an ounce, up more than 1% on the day.
(Source of spot silver 30-minute chart trend chart: 24K99)
Economies.com pointed out that a breakout of $23.00/oz would be the first key condition for silver to start a recovery, in which case silver is expected to build a bullish move and target the $23.70/oz area, the main target.
FXStreet analyst Anil Panchal said that next, with the deadline approaching in early June, the US debt ceiling negotiations will be the key to gauging the market trend. Investors should also keep a close eye on U.S. durable goods orders for April and the core personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, for clear direction.
At 20:30 Hong Kong time on Friday, the U.S. Department of Labor will release April personal consumption expenditures (PCE) price data. Year-on-year changes in the core PCE price index, the Fed’s favorite inflation measure, have a big impact on policymakers.
According to authoritative media surveys, the PCE price index in the United States is expected to rise by 4.3% in April, compared with an increase of 4.2% in March; the core PCE price index in the United States is expected to rise by 4.6% in April, compared to an increase of 4.6% in March.
US durable goods orders data for April is also scheduled to be released at 20:30 Hong Kong time on Friday. According to authoritative media surveys, the initial monthly rate of US durable goods orders in April is expected to fall by 1.0%, after rising by 3.2% in March.
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Tags: Gold bulls broke outGold topped silver soars day Xinhua English .news.cn
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