Spot gold fluctuated higher during the European session on Wednesday (May 8). The price of gold rebounded after hitting a low of 2,303 US dollars during the day. Currently, it is trading around 2,317 US dollars, an increase of about 0.16%.
US Treasury yields rose slightly, with 10-year Treasury yields rising 0.63% to 4.487% and 2-year Treasury yields rising to 4.843%. This rise reflects investors' reactions to recent comments from Federal Reserve officials, which provide insight into the potential direction of interest rates.
Recently, statements from Minneapolis Federal Reserve Chairman Neel Kashkari (Neel Kashkari) and Richmond Federal Reserve Chairman Tom Barkin (Tom Barkin) stated that a stable interest rate policy should be adopted until a more clear trend of deflation occurs.
The US dollar remained strong, weakening the appeal of gold to holders of other currencies. Furthermore, rising interest rates have led to an increase in the opportunity cost of holding unprofitable gold, further challenging the status of gold.
Geopolitical concerns and safe-haven needs
Despite pressure from changes in monetary policy and yield, gold continues to benefit from its safe-haven status. Geopolitical risks, particularly those relating to the Middle East and Ukraine, provided some support for gold prices. The potential escalation of NATO and Russia brought additional uncertainty, increasing the appeal of gold in times of geopolitical conflict.
The outlook for gold remains mixed, given current economic indicators and the geopolitical context. Although safe-haven demand provides some support, a stronger dollar and the possibility that US interest rates will stabilize or rise may limit the upward trend.
Traders currently expect a 65% chance that the Federal Reserve will cut interest rates in September, and this situation may change rapidly with new economic data or geopolitical changes. Investors should prepare for possible fluctuations in the gold market and keep a close eye on further economic indicators and central bank hints.
Gold technical analysis
(Spot Gold Daily Map Source: Easy Huitong)
Given current economic conditions and market sentiment, recent forecasts are pessimistic. The current daily chart shows that traders are hesitant and impending fluctuations.
The trigger point for the accelerated rise was $2336.41, and the corresponding price for a short-term crash was $2277.345, and traders just waited for a catalyst before taking action.
The most recent major support level is the rising 50-day moving average at $2251.70.
At 20:11 Beijing time, spot gold was reported at 2316.38 US dollars/ounce, an increase of 0.11%.