Gold suddenly riot hit 1900? Dollar falling or challenging lower levels

On Tuesday (May 25) in the European market, market risk sentiment rose, and European and American stock markets rose in full, easing concerns about inflation after weaker US economic data than expected and reassurance from Federal Reserve officials. The dollar index (90.1806, 0.0512, 0.06%) suffered a sharp sell-off, falling to 89.53, a low of more than four months. The euro (1.2162, -0.0002, -0.02%) / US dollar rebounded significantly above 1.2250.
It is worth noting that in the US, the decline in US debt yield is intensified, the gold market is short-term violent, and the spot gold has broken through the 1890 pass, with the highest value of USD 1895.97 / ounce, and the sword refers to the 1900 pass
On the news side, on the news, the US consumer confidence index fell slightly for the first time in May, due to a series of rising prices for goods and services. According to a report on Tuesday, the world’s largest business research institute’s consumer confidence index fell to 117.2 in May, and the April value was revised down to 117.5. Economists surveyed by Bloomberg estimated a median of 118.8.
Although consumer confidence has fallen, it still hovers near the peak of the epidemic period. As the economy slowly returns to pre outbreak levels, rising prices and rising unemployment rates may inhibit further improvement in consumer confidence.
The poor US economic data, coupled with weaker than expected data, and Fed officials insisting that policy will remain unchanged eased investors’ concerns that inflation will force interest rates to rise.
In addition, the latest real estate market data in the United States shows that the annual rate of s&p/cs20 major cities in March increased for 10 months, a record since December 2013. The monthly rate of the FHFA house price index in March was 1.4 percent, a record high since October 2020.
The S & P CoreLogic case Shiller house price index rose 13.2 percent nationwide, the biggest since December 2005, and 12 percent in February, Bloomberg wrote. Meanwhile, house prices in 20 U.S. cities rose 13.3 percent, surpassing the median forecast by Bloomberg economists and the biggest rise since december2013.
Housing prices have been soaring over the past year as Americans have been buying real estate in the suburbs. Low mortgage rates have spurred the real estate market, and the shortage of housing has helped push prices higher.
Gold: the Fed soothes market concerns about inflation, and investors have endorsed the Fed’s view that inflation is temporary, and it is expected that the Fed will maintain loose monetary policy and support the gold price trend to some extent. The decline in US debt yields is also a driving factor in gold price challenge 1900!
Technically, gold prices exceed $1890, and a recovery of $1900 will inevitably occur. The next horizontal trend line resistance, which is at $1918, will be of much concern.
Dollar index: the dollar index continued Monday’s decline on Tuesday, hitting a monthly low of 89.50. The view of the dollar remains negative for a while, so it is likely that the index will likely have a deeper correction in the short term. Based on this, the dollar index has room for a short period of time to return to an annual low of 89.20 (January 6).

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