Forex. Gold trading forecast for today May 13, 2021
The price of Gold retreated from a three-month high and fell to the support level of $1,820 per ounce.
The rising US Dollar and high yields on securities put pressure on the asset. The recent rise in non-ferrous metals and energy prices has raised inflation expectations, and this has increased the attractiveness of Gold as a perceived hedge against price fluctuations. From March 30 to May 10, the asset price increased by almost 10%. But this week, optimism of likely reflation boosted nominal and real yields, triggering a pullback in the Gold market.
Despite the drop on Wednesday, the precious metal remains above the important support level of $1,800 per ounce. Weak US labor market data and the low probability of the Fed tightening monetary policy in the near future provided Gold with a long-awaited breakthrough and continue to support demand. The technical and fundamental improvements that have recently been observed in the Gold market are a sign that the short-term outlook for the asset is quite positive. Current and future stimulus measures in the US and other countries around the world are the factors that lead to an increase in debt and inflation, and therefore will continue to push prices up to new record values.
Signals for Gold trading on Forex
The forecast assumes the recovery of the Gold price to the levels of 1825, 1830 and 1840 Dollars per barrel.