Gold Analysis – May-29-2024

Gold Analysis—On Wednesday, XAU/USD prices edged lower to $2,350 per ounce. This came as investors reduced bets on US Federal Reserve rate cuts this year following recent comments from officials. Traders eagerly await the critical Personal Consumption Expenditures (PCE) inflation report due on Friday.

Gold Analysis – May-29-2024

Gold Analysis – May-29-2024

On Tuesday, Minneapolis Fed President Neel Kashkari stated that the Fed should delay cutting rates until there is a significant improvement in inflation. He even suggested that rates might be hiked if inflation doesn’t decrease further. This has made traders more cautious, shifting their focus to the upcoming PCE data, which is the Fed’s preferred inflation measure. The report is expected to show that prices did not accelerate, aligning with the Consumer Price Index (CPI).

Amidst these economic concerns, geopolitical risks in the Middle East continue to boost the safe-haven appeal of gold. Recent reports highlighted that Israel’s military denied striking a tent camp west of Rafah. However, Gaza health authorities reported that Israeli tank shelling killed at least 21 people in a designated civilian evacuation zone.

Conclusion

In summary, while gold prices are steady at nearly $2,350 per ounce, the market remains on edge. Investors are closely monitoring both economic data and geopolitical developments.

The upcoming PCE inflation report and ongoing tensions in the Middle East will likely influence market movements in the coming days. This cautious stance reflects a broader uncertainty as traders balance economic signals and geopolitical stability.