Gold Prices Rise Ahead of Important Data: What Are the Conditions for its Return Towards 1800?

Investing.com – Gold prices rose on Tuesday, coinciding with the decline in the dollar index, although prices moved in a narrow range.

Traders are looking forward to later in the day and on Wednesday.

Saudi Investing offers you a free course to learn how to profit in the currency, gold and stock markets through Japanese candlesticks.

Reserve your seat now to learn how to deal with price action, know the best Japanese candlesticks, and differentiate between real and fake candles.

All you have to do is register in minutes: click here

Gold and the dollar now

It rose by 0.3% to $1,976 an ounce.

While spot contracts rose by 0.21% to 1962 dollars an ounce.

On the other hand, it decreased by 0.31% to 102.902 points.

gold when settling yesterday

Gold prices fell at the settlement of transactions, yesterday, Monday, after the rise of the dollar and the returns of gold.

Upon settlement yesterday, gold futures contracts for August delivery fell by 0.4%, or the equivalent of $7.5, to reach $1969.7 an ounce, after touching $1981.40 during trading.

Also read:

Also read:

There is a lack of stimuli

Michael Langford, director of corporate advisory firm AirGuide, said: “The market is waiting for US CPI data and the FOMC meeting to provide clearer direction on the matter. However, there is a lack of catalysts to support gold’s outperformance over other asset classes regardless of the Bank’s policy decision. US Federal Reserve.

May CPI is expected to show a slowing pickup in yoy inflation to 4.1% from April’s reading of 4.9%, and on a monthly basis it is expected to come in at 0.2%, down from a 0.4% rise in the previous month.

David Solomon, CEO of Goldman Sachs (NYSE:) said: “The persistence of high levels of inflation makes there a reasonable opportunity to increase interest rates,” according to “CNBC.”

While gold is seen as a hedge against inflation, the higher interest to tame price pressures generally affects the attractiveness of non-yielding assets.

Traders are pricing in a roughly 81% chance of a Fed rate hike, and a 19% chance of a 25 basis point rate hike, according to Investing Saudi Arabia’s Fed Interest Tracking Tool.

Langford added: “Gold should continue in the sideways direction towards the 100-day moving average of $1941/oz, and if this level is broken, the next support will be the 200-day moving average of $1841/oz.”

The European Central Bank will make its interest rate decision on Thursday and is widely expected to raise interest rates by 25 basis points. But the Bank of Japan, which will announce its verdict on Friday, is expected to continue its loose policy.

Important data

The New York Federal Reserve’s survey of consumer expectations in May showed that the average inflation expectation fell by 0.3% over the next year to 4.1%, the lowest reading since May 2021.

While consumers expect food, rent, medical and college costs to fall over the next year, the median forecast for house price growth rose for the fourth consecutive month to 2.6% in May, the highest reading since July 2022.