The price of gold is seen to be still trading stable even though some statements issued by some members of the Fed yesterday are seen to be able to suppress the price of gold trading low.
In conclusion, the Fed is still adamant that the implementation of interest rate cuts will not be implemented hastily until they have clear data and evidence that the inflation rate is truly stable below the 2% level.
Global demand in the gold market is still seen as high due to high risk market conditions.
The geopolitical factors of the war, the Sino-American political crisis and the bulk purchase of gold by the world's central banks are still supporting the demand for gold.
The "Gold Bullion" source report has reported that Russia has allocated $1.2 billion for the purchase of currency and gold from May 8, 2024 until June 6, 2024.
Technical Analysis
Based on the daily chart, gold is seen to be still trading above the $2,360 level after the "pullback" structure was successfully carried out during last week's market session.
Gold is seen to be able to re-challenge the previous highest price level if market sentiment remains unchanged.
But if it's the other way around, $2,360 will be an obstacle before gold is seen to be able to retest the $2,286 price level.
