“Gold: Is the Bullish Trend Over After Recent Losses?”

Investing.com – Gold bulls are still counting on another record high if the little chick can save the world – or more precisely, the US economy, from a government debt default or recession. However, the path of least resistance for the yellow metal over the past three weeks has been lower.

June delivery at Comex, New York, settled on Friday at $1,944.30 an ounce, up just 60 cents, or 0.03%, on the day. The benchmark fell to a nine-week low of $1,936.90 earlier in the session, after hitting an all-time high of $2,085.40 on May 4. For the current week, gold fell in June by 2% after another loss of 2% in the previous week and 0.25% in the week before..

The spot price of gold, which reflects physical trading in bullion and is closely watched by some traders, reached $1,945.04 by 14:00 ET (18:00 GMT) on Friday, up $4.19 or 0.2% on the day. Spot gold fell to a three-week low of $1,936.85 during the session, after a record high of $2,073.29 earlier this month, according to U.S. data. Investing.com. Over the course of the week, spot gold fell 1.7%, after a previous loss of 1.7% in the previous week and 0.3% in the week before..

Sunil Kumar Dixit, Chief Technical Strategist at SKCharting.com:

“The short-term trend has turned bearish, and unless we witness signs of recovery, which requires strong stability above 38.2% Fibonacci level at $1,975 on a weekly basis, it is difficult to rule out more decline towards 61.8% Fibonacci level of $1,910. ,

Dixit added, “But there is a possibility that gold buyers will reappear when testing the $1926 level and $1910 level if gold falls to this region.”“.

Craig Erlam, an analyst at online trading platform Wanda, was also in the analyst camp that sees gold’s uptrend as cracked but not completely broken..

“Gold’s tough week is coming to an end as some investors try to protect themselves in case the debt ceiling talks hit a dead end at 11 a.m.,” Erlam said. “It’s a difficult time,” he said [لواشنطن] capital and a possible scenario for the troubled asset rescue program may occur (TARP) [بدءًا من عام 2008] When Congress initially failed to pass the bank bailout program, this is why some traders are jumping into gold ahead of the long weekend. Lula for another round of statements [التضخم] Optimistic, gold would have ended the week much stronger “.

And President Joe Biden announced Thursday that the United States will avoid a catastrophic credit deficit even as lawmakers’ negotiations stall for 10 days without an agreement on raising the country’s borrowing limit to keep paying the bills. With only seven days left until June 1st – the earliest possible point when the government will stop disbursing money to service its debts – defaults on loan payments are likely to trigger a recession that threatens global markets. But House members began traveling for the Memorial Day recess after their last vote Thursday morning and won’t return until June 4.

“Gold is in the danger zone as optimism remains that the debt ceiling confrontation will end up being resolved, and that the US economic resilience will force the Federal Reserve to keep interest rates high for a longer period,” Erlam said. “Gold could benefit if inflation does not prove too entrenched and the labor market starts to soften. Next week will provide clarity on what is going on while watching for signs of default in the US and whether the US economy remains very strong and warrants further tightening by the Reserve Bank,” he added. Federal “.

Gold came under pressure on Friday after the US Federal Reserve’s preferred measure of inflation came in higher than expected for April, suggesting the central bank will raise interest rates again in June and July against expectations of a pause..

All major measures rose in the so-called personal consumption expenditures index, or PCElast month against expected levels as the Fed desperately searched for indicators that would force a longer hold on its monetary policy which has already seen it raise interest 10 times in a row over 15 months..

For the year ending in April, PCE grew by 4.4% against expectations of 3.9% and prior growth of 4.2%. For the same month of April, it jumped by 0.4% as expected versus a previous expansion of 0.1%..

The “core” personal consumption expenditures index, which excludes volatile food and energy prices, rose at a growth rate of around 4.7% year-on-year versus both the expected and prior rate of 4.6%. On a monthly basis, it increased by 0.4%, compared to expectations and the previous rate of 0.3%..

said economist Adam Patton on the Forex LabF Forum: “Inflation is an issue and the consumer is still very active.” “The Fed will hike again and now the odds are 58-42% for June-July at 100% with little chance of another hike. At some point the Fed is going to have to pause and assess but we are resorting to some very high energy numbers now and it’s not enough to get inflation below 3, the Fed needs to start seeing some monthly numbers at +0.3% or less “.