Article by: ETO Markets

After the release of U.S. economic data on Thursday, the price of gold rose by over 1%. The first-quarter Gross Domestic Product (GDP) data met expectations, and initial jobless claims for last week were slightly lower than expected. However, the U.S. Dollar Index (DXY), which measures the dollar against a basket of other currencies, slightly declined after hitting a new monthly high near 106, triggering a rebound in precious metals. As a result, the price of gold settled around $2326. The Personal Consumption Expenditures (PCE) Index will be the key factor in determining investors' direction.

The gold/USD price rebounded at the neckline but did not break through the previous upward trend line, currently hovering around the 20-day simple moving average at $... However, this neutral trend seems unlikely to last long. If the neckline is broken, a bearish trend in gold could begin, with sellers pushing the price down to $…, and then to the March high near $…. Conversely, if the gold price rises above the 50-day simple moving average, the downtrend will be negated, paving the way for a return to around $...