Traditionally weaken higher yields gold, but persistent inflation problems can lead to investors to cover themselves with precious metal. The CME Fedwatch tool now shows a higher chance that the rates remain unchanged until June, which strengthens gold prices.
On the other hand, the wider geopolitical landscape also influences Gold’s momentum. Tensions around Ukraine and NATO discussions weigh on risk assets, which weakens the US dollar. A weaker dollar generally increases gold, making it more attractive for foreign investors.
Moreover, the hostage of US President Donald Trump ultimatum adds further uncertainty, which increases the demand for safe port activa. With the inflatoidal pressure that remains strong and the worldwide tensions persist, the Bullish Trend of Gold will probably remain.
Golden (XAU) Technical analysis
Gold Daily Chart – Bullish Hammer
The daily graph for gold shows that the price acts within a rising widening wig pattern, which Bullish Momentum indicates. In particular, a Bullish Hamer has reversed the Beararish hammer on Wednesday after releasing the American CPI data. However, gold must break more than $ 2,942 to initiate the next step higher.