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Gold technical outlook – neutral
Developments on the technical charts of gold recently indicate that the bar for a sustained rise is getting higher as US inflation remains stubbornly high just as the economy displays signs of resilience.
However, until it breaks below key support, the path of least resistance remains sideways to up for the yellow metal.
Data released on Friday showed US business activity rose to an 11-month high in April, suggesting that the economy is weathering the surge in interest rates. To be fair, Friday’s survey data could be overstating the actual state of the economy. Hard data published gives an impression of a slowing economy, including the labour market and retail sales, just as credit tightening by banks starts pinching households and small businesses.
This brings into focus US GDP growth data for the January-March quarter due on Thursday – growth is forecast to have slowed to 2% on-quarter from 2.6% in the previous quarter.
XAU/USD 240-minute chart
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