The length of gold still awaits at 8,850 altars, but at that level, their search for snipers ended in vain for the second week in a row.
However, believers in the yellow metal did not prevent a 0.8% raise at the end of Friday and a 0.3% rise for the week. It was the second positive week for gold after last week’s 3.3% rally, which proved its best since the last week of October.
The benchmark gold futures at New York’s Comex rose to 8 1,838.10, 10 14.10 during the day, and 15 6.15 during the week.
The spot price of gold $1842.87
The U.S. through data on consumer and manufacturer prices, industrial production, and consumer sentiment.
The U.S. The consumer price index grew 4.2% in the first 12 months of April, the largest increase in nearly 13 years, while the producer price index rose 6.2% last month to its biggest expansion in a decade over one year.
U.S. industrial production rose 0.7 percent in April, down one-third in March, and the Federal Reserve said the increase in mining was further boosted by the fact that carmakers had shut down some plants following a shortage of auto-circuit microchips.
In May, the U.S. An initial reading of consumer confidence showed a decline as Americans worried about inflation and its impact on their income, the University of Michigan said in a study closely followed by the country’s economists.
Meanwhile, the U.S. The flattening in April, after retail sales rose nearly 11% in April, dampened inflation expectations in an economy recovering rapidly from the coronavirus epidemic, according to trade data.
The Federal Reserve acknowledges price pressures arising from disruptions in supply chains struggling to meet demand in an economy that will reopen several months after the epidemic.
“The next challenge for gold is to recapture 85 1,855 levels, which could open flood gates for fast traders.”
Logically, gold should be mobilized in its inflation signal, hedge against the value of its long-term share and rising costs.
Therefore, the dollar index and the 10-year Treasury note have rallied relentlessly with gold this week, blocking the opportunity for a breakout of the yellow metal, which could move closer to the $1900 level, setting the stage for a return above the August high of $2,000.
