Gold Struggles to Ride the Bullish Wave
In the crisp hours of Friday, gold is stuck between $2040 and $2042 – the resistance it jumped yesterday but hasn’t yet broken.
What’s Driving the Slow‑Mo Movement?
- The precious metal is almost a month away from its all‑time high.
- A modest pullback in the US dollar is helping keep the price afloat.
- US inflation data shows the lowest yearly rise in three years.
- Fed officials hint that the first rate cut might drop in June.
Why Fed Talk Cautions Gold
Even though inflation is easing, the Fed’s recent statements keep the rate‑cut timeline vague. That uncertainty, paired with the Fed’s hawkish stance, keeps Treasury yields on the up and the dollar from taking a big belly flop – dashing gold’s mood.
Risk‑On Markets Overshadowing the Safe‑Haven
Stocks are still hugging a big up‑trend, so traders are reluctant to put their money into the “safe” metal. The result? No strong bullish push for gold in the short run.
What Could Flip the Script?
More hawkish Fed comments, or a clear policy shift in June, could flip the narrative and lift gold. Until then, keep your eye on economic data as it may hint at when the Fed will finally cut.
Quick Takeaway
Gold is at a standstill – juggling between price floor and ceiling, with the Fed’s next move holding the key.
