GBP/USD needs to clear 1.2660 to extend its bullish rally

GBP/USD has lost its traction but managed to hold above the 1.26 level. The pair needs to clear 1.2660 to remain bullish.

Cable needs to flip 1.2660 into support to attract buyers

“The Conference Board's Consumer Confidence Index for May and the Housing Price Index data for March will be featured in the US economic docket. In case investors are reminded of the negative impact of inflation on consumer confidence, Wall Street's main indexes could come under bearish pressure and make it difficult for GBP/USD to gather bullish momentum.”

“In case cable breaks below 1.26 (psychological level, static level), the next immediate support aligns at 1.2570 (200-period SMA, 50-period SMA). If that latter support fails, this could be seen as a significant bearish development and open the door for additional losses toward 1.2540 (former resistance, static level).”

“The pair needs to settle above 1.2630 (ascending trend line) and clear 1.2660 (static level) to test 1.27 (static level, psychological level).”

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Gold PriceGold Price Forecast: Battle lines well-defined for XAUUSD amid light trading 

Gold Price is supported above $1,850 amid holiday-thinned trading.

US dollar remains on the defensive amid a risk-on market mood.

XAUUSD is struggling amid a bunch of healthy resistance and support levels.

Gold Price is giving a part of its early gains but appears supported amid holiday-thinned market conditions. The US dollar is seeing a dip-buying demand, despite the risk-on trading on global stocks. Investors continue assessing the China covid easing optimism and subsiding aggressive Fed’s tightening bets against signs of slowing in the US economy. Therefore, gold price is seen fluctuating between gains and losses while defending the $1,850 barrier. The EU Summit on Ukraine crisis is closely followed, as Russia’s oil embargo is likely to be part of EU sanctions package. These developments could affect the broader market sentiment, significantly impacting the dollar and XAUUSD price.

WANT TO DIRECT TALK OUR MARKET EXPERT CONTACT MONEY LIFE RESEARCH Forecast: Battle lines well-defined for XAUUSD amid light trading 

Gold Price is supported above $1,850 amid holiday-thinned trading.

US dollar remains on the defensive amid a risk-on market mood.

XAUUSD is struggling amid a bunch of healthy resistance and support levels.

Gold Price is giving a part of its early gains but appears supported amid holiday-thinned market conditions. The US dollar is seeing a dip-buying demand, despite the risk-on trading on global stocks. Investors continue assessing the China covid easing optimism and subsiding aggressive Fed’s tightening bets against signs of slowing in the US economy. Therefore, gold price is seen fluctuating between gains and losses while defending the $1,850 barrier. The EU Summit on Ukraine crisis is closely followed, as Russia’s oil embargo is likely to be part of EU sanctions package. These developments could affect the broader market sentiment, significantly impacting the dollar and XAUUSD price.

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Dow Futures Up 55 Pts; Core PCE Data in Focus

U.S. stocks are seen opening slightly higher Friday, rallying into the long weekend, helped by a reassessment of the Federal Reserve’s tightening bias as well as some strong retail sector earnings.

At 7 AM ET (1100 GMT), the Dow Futures contract was up 55 points, or 0.2%, S&P 500 Futures traded 14 points, or 0.3%, higher and Nasdaq 100 Futures climbed 70 points, or 0.6%.

The main equity indices on Wall Street posted strong gains Thursday, with the blue-chip Dow Jones Industrial Average closing over 500 points, or 1.6%, higher, while the broad-based S&P 500 gaining 2% and the tech-heavy Nasdaq Composite rising 2.7%.

These averages are on track to snap long losing streaks ahead of the Memorial Day holiday, with the Dow and S&P 500 both over 4% higher for the week and the Nasdaq Composite up 3.4% on the week.

Helping the better tone this week has been the take-away from the minutes of the last Federal Reserve meeting, which indicated that the central bank could slow down its tightening if it sees signs inflation is on a downward trend. 

This puts the spotlight on the release of the core personal consumption expenditure index, at 8:30 AM ET (1230 GMT), which is the Fed's preferred measure of inflationary trends. This is expected to fall to 4.9% on an annualized basis in April, from 5.2% the previous month.

A batch of strong earnings from the retail sector has also boosted market sentiment this week, with the likes of Macy’s (NYSE:M), Williams-Sonoma (NYSE:WSM), Dollar Tree (NASDAQ:DLTR) and Dollar General (NYSE:DG) all posting healthy gains.

Retail earnings continue Friday, with Big Lots (NYSE:BIG) due to report, but there will also be attention on Ulta Beauty (NASDAQ:ULTA), which reported better-than-expected quarterly results after the close Thursday, and Gap (NYSE:GPS), which slashed its full-year profit guidance. 

Workday (NASDAQ:WDAY) will also be in focus after missing earnings forecasts late on Thursday and giving disappointing guidance.

Oil prices edged lower Friday, consolidating around a two-month high on expected demand growth at the start of the summer driving season in the United States.

Also propping up the market is the continued expectation that the European Commission will eventually obtain the unanimous support of all 27 bloc member states for its proposed new sanctions against Russia, despite Hungary’s opposition to date.

By 7 AM ET, U.S. crude futures traded 0.4% lower at $113.67 a barrel, after gaining 3.4% during the previous session, while the Brent contract traded 0.4% lower at $113.70, after a gain of 2.7% on Thursday.

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Gold Price Forecast: XAUUSD bears eye $1,838 and $1,836 as next downside targets

Gold Price is back in the red, falling for the second straight day.

Less hawkish Fed minutes failed to impress gold bulls but not for long.

XAUUSD inches closer towards critical 200-DMA support ahead of US data.

Gold Price is feeling the pull of gravity after less hawkish FOMC minutes released on Wednesday offered a brief reprieve to XAU bulls. The bright metal is extending the retreat from two-week highs of $1,870, as the US dollar clings onto minor recovery gains amid a cautious risk environment. The precious metal, however, seems to find some comfort from falling Treasury yields, as investors digest the latest Fed minutes, which squashed hopes for a more than 50 bps rate hike in the coming months. Going forward, gold’s fate hinges on the key US GDP, Pending Home Sales and PCE data, as it could impact the central bank’s expectations.

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Comment on Gold on May 24, 2022

 In yesterday's session, precious metal Gold did not correct much, but increased from 1842 to 1865 ($23) then dropped back to 1846, closing the day with a bullish candle around.  threshold 1853. Although the gaining force is not strong and is currently decreasing slightly, but the increasing force is still there and the option to wait to buy will be more feasible in today's session.

 - On the h4 time frame, after meeting the 1865 resistance, it is currently decreasing to 1850. In my opinion, the possibility of Gold falling further to the 1836-1842 price zone.  Here we consider the option to buy.

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Gold Price Analysis: XAU/USD benefits from softening buck, lower US yields, eyes test of 200-DMA

Gold is higher amid risk-off flows, a weaker buck and lower US yields.

XAU/USD is eyeing a test of its 200-DMA around $1,837 once again.

Spot gold (XAU/USD) prices are trading around $1,830 per troy ounce and once again eyeing a test of the 200-Day Moving Average around $1,837, having gained around $15 (or around 0.8%) thus far on the session. Risk-off flows in the global equity space have continued on Thursday after Wall Street’s worst day in nearly two years on Wednesday as investors continue to fret about softening global growth expectations at a time when major central banks (namely the Fed and to a lesser extent the BoE and ECB) appear intent on aggressive monetary tightening.

That is a toxic combination for equities and investors have begun seeking out safety in traditional safe-haven assets such as US bonds, even though US bond valuations have been hit hard in recent months by the hawkish shift in the Fed’s stance. Either way, on Thursday US yields (nominal and real) are lower and this is dampening the appeal of the US dollar as a safe-haven currency, with the likes of the Swiss franc and yen performing better.

The combination of lower yields, which reduces the “opportunity cost” of holding non-yielding gold, and a weaker US dollar, which reduces the price of USD-denominated commodities like XAU/USD for foreign buyers, is having the dual effect of supporting gold on Thursday. But whether these trends will continue, and whether XAU/USD will be able to break above its 200-DMA and out of its recent bearish trend, remains to be seen.

In recent weeks, buying USD dips and selling gold rallies has been a highly profitable strategy. As long as markets continue to believe that the Fed will follow through with as much monetary tightening as it has been promising, gold’s chances of rebounding back to the, say, upper-$1,800s look limited. Looking to the immediate future, a few tier two US data releases on Thursday in the form of the May Philadelphia Manufacturing survey, the weekly initial jobless claims report and April Existing Home Sales probably won’t move markets much. But the data will likely keep focus on the overarching themes of slowing growth, inflation and central bank tightening.

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Gold Down as Investors Continue Digesting Hawkish Powell Remarks

Gold was down on Wednesday morning in Asia, with the dollar continuing its retreat from a 20-year high and countering pressure from stronger Treasury yields. Investors also digested the latest hawkish comments from U.S. Federal Reserve Chairman Jerome Powell.

Gold futures were down 0.59% to $1,808.24 by 12:48 AM ET (4:48 AM GMT). The dollar, which normally moves inversely to gold, edged up on Wednesday but extended its decline into a fourth day. Investors’ increased appetites for riskier bets also took the edge off the safe-haven greenback's appeal.

Powell on Tuesday pledged that the U.S. central bank would hike interest rates as needed to curb sky-high inflation that he said threatened the foundation of the economy. The Fed has hiked its interest rate by three-quarters of a percentage point in 2022 to date and is on track to hike it again in half-percentage-point increments at its next two meetings in June and July 2022.

Philadelphia Fed President Patrick Harker will speak, and a G-7 finance ministers and central bankers meeting will take place, later in the day.

In Asia Pacific, Japan’s GDP contracted 1% year-on-year and 0.2% quarter-on-quarter in the first quarter of 2022, while Australia’s wage price index grew 2.4% year-on-year and 0.7% quarter-on-quarter.

Strong U.S. retail sales and factory data for April gave investor sentiment a boost, with consumers purchasing motor vehicles and frequenting restaurants, showing no signs of a slowdown in demand despite high inflation.

In other precious metals, silver and palladium edged up 0.2%, while platinum inched up 0.1%.

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