On Wednesday, the price of Gold again turned around from the resistance level of $1,800 per ounce and fell to the level of $1780.
Quotes fell from a more than two-month high, as the recovery of the US Dollar undermined the attractiveness of the asset. The US Dollar Index rose 0.3%, making Gold less attractive to holders of other currencies. Investors are speculating that the rapid recovery in the US economy could trigger an interest rate hike sooner than expected. All this is happening against the background of the Fed's soft position. Fed Chairman Jerome Powell said that the US economy is feeling better, but it is too early to talk about a stable systemic recovery.
Now investors are waiting for the employment data for April to get further confirmation of the strength of the US economy. The nearest resistance for gold is located at the level of 1800 USD, and its breakout may lead to an increase to the level of 1816 USD. The precious metal remains in the range, but the upper limit is gradually moving up. The growing demand in China and India supports the quotes and may provide gold with a breakdown of the key resistance. According to a number of forecasts, the US labor market data at the end of the week will be below inflated expectations, and this will allow prices to approach the level of $1800 for the third time in the last period.
Gold Trading Signals for today, May 5, 2021
In the forecast, the price of Gold is expected to strengthen to the levels of 1785, 1790 and 1795 Dollars per ounce.