Article by: ETO Markets

Some buyers are drawn to the gold price. A gold rise may be attributed to demand for safe haven assets, which is being driven by continuous central bank purchases and geopolitical tensions and uncertainties. However, in spite of the less positive than anticipated US employment data in April, the aggressive statements made by Federal Reserve officials may dash expectations for prospective interest rate reductions in 2024. This could therefore cause the price of precious metal to drop.

The initial objective on the downside for XAU/USD will be the psychological round figure of $... If there is any further selling below this point, the lower limit of the consolidation will be visible, which is $... A bearish break below the indicated level will lead to $… and a round number of $...

The immediate hurdle will appear on the upside close to the $… high from May 6. The next obstacle is situated close to the intersection of the upper bound of a channel with a declining trend and the high of April 26 near $... The $… round mark, which is en route to an all-time high at $…, is another upward filter to keep an eye on.