Forex trading. Gold exchange rate forecast for today, May 31, 2021
After a slight pullback in the second half of last week, the price of Gold again exceeded the resistance level of $1,900 per ounce and is now trying to gain a foothold above this mark. The final increase in the value of the asset for May was 8%, and this provided the best result in the last 10 months.
The next two months will be a real test for Gold due to rising inflation in key economies. Strong US employment market reports are also expected, especially after unexpectedly weak data last month. All other things being equal, high inflation is favorable for Gold, which is considered the best means of saving in times of financial and political problems. But in recent months, the likelihood has been growing that the Fed will raise rates faster than expected, although the Central Bank has actively denied this possibility. Such speculations lead to local sales of Gold and to an increase in demand for its main competitors-treasury bonds and the dollar. The Fed recognizes the price pressures arising from the bottlenecks in the US supply chains that have emerged as a result of rising demand after the pandemic. The consumer price index, which includes food and energy, added 4.2% in April, the biggest increase in nearly 13 years. Prices increased by almost all components and led market participants to believe that the increase in inflation in 2021 may be the highest in 35 years.
Gold price forecast for May 31, 2021
In the forecast, Gold is expected to rise to the levels of 1910, 1915 and 1925 Dollars per ounce.