Forex. Gold exchange rate forecast for today May 11, 2021
Gold continues the successful trend of last week and is growing in price. On Monday, the quotes reached the resistance of $1,840 per ounce.
Weak US employment figures last week reinforced market participants' expectations that interest rates will remain low for some time. The US Central Bank has promised to keep the rate until inflation and employment rise, so Friday's data directly affects the demand for gold. Low rates reduce the opportunity cost of owning precious metals and other assets that do not generate direct income.
At the same time, exchange-traded funds backed by Gold have been recording outflows for several months. Fresh data from the World Gold Council shows that global ETFs lost 18.3 trillion tons of assets under management in April. The outflow of funds has been observed for 5 of the last 6 months. But the global fall still slowed significantly, as European funds saw their first asset gains since January. The maximum outflow was recorded in funds from North America. The short-term price-performance model developed by the World Gold Council suggests that the main driver of the asset's recovery in April was the weakening of the US Dollar, along with a decline in real interest rates. Given that both trends continue, the forecast of price strengthening in the near future is also maintained.
Signals for Gold trading on Forex
The forecast assumes the growth of gold to the levels of 1845, 1850 and 1860 Dollars per ounce.