Gold is on the rise today, marking a 1% increase and nearing the $2,370 mark, as buyers aim to capitalize on yesterday’s upward surge. The surge in the precious metal comes in tandem with a faltering dollar following the release of weaker-than-expected US weekly jobless claims data. This sudden shift in momentum for gold follows a period of decline towards the end of April, with the metal now poised to break a streak of back-to-back weekly drops with a current gain of nearly 3% for the week.
However, amidst this upward movement, there exists a notable trendline resistance around $2,372.50, signaling a potential obstacle before reaching the $2,400 milestone, especially as investors anticipate key US data releases next week.
Similar to equities, gold experienced a robust performance at the start of the year, only to face setbacks in April. Yet, despite this retracement, gold concluded the month on a higher note. While the overarching outlook for gold remains predominantly bullish, there is a growing sentiment that a more substantial pullback may be overdue.
Nevertheless, market analysts emphasize that chart patterns remain the primary indicators of market sentiment and conviction. For now, gold buyers show no signs of slowing down, demonstrating sustained interest in the precious metal.