I believe there was a leakage in US May nonfarm payrolls last Friday. The excuse and guse of stopping gold buying by the Chinese central bank was just media hype.
Gold had a volatile week as the recent corrective period continues. But despite a huge overreaction on Friday to the job numbers the bull remains intact.
So fragile now is the state of the economy, the state of the stock market and the state of the world in many respects. Therefore Gold is the place to be!
After being overbought in recent months, gold could use a healthy pullback. Gold also has good odds of surging further. So rather unusually, gold could move either way this summer.
Gold has broken the pattern of lower highs and lower lows, signaling the downtrend has ended. Closing above the 18-day average signals an upward bias, with the battleground around $2390.
Interest rate cuts initially will be bullish for precious metals and base metals and energies. The overall trend will be there for gold and silver and copper for the rest of the year.
The NY Fed disclosed data on maxed-out borrowers with high credit card utilization rates, which typically signals tight cash flow and financial issues for the borrower.
Gold is up about 1.38%, not dropping significantly. It fell from $2475 to the $2340s, losing $100 an ounce. Currently, it's stable, trying to determine its next move.
Incoming US economic data releases (for May 2024) so far this week indicate a mild slowdown. Political uncertainty in key nations will always be bullish for gold and precious metals.
