{"id":14274,"date":"2023-05-26T14:55:06","date_gmt":"2023-05-26T18:55:06","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/commodities\/gold-in-3rd-weekly-loss-analysts-say-upside-cracked-not-entirely-broken\/"},"modified":"2023-05-26T14:55:07","modified_gmt":"2023-05-26T18:55:07","slug":"gold-in-3rd-weekly-loss-analysts-say-upside-cracked-not-entirely-broken","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=14274","title":{"rendered":"Gold in 3rd weekly loss; Analysts say upside cracked, not entirely broken"},"content":{"rendered":"
\n

Investing.com — Gold bulls are still counting on another record high if the Chicken Little metaphor of saving the world \u2014 or more precisely, the U.S. economy, from a government debt default or recession \u2014 doesn\u2019t come true. Yet, the path of least resistance for the yellow metal over the past three weeks has been lower.<\/p>\n

on New York\u2019s Comex settled Friday\u2019s session at $1,944.30 an ounce, up just 60 cents, or 0.03%, on the day. The benchmark gold futures contract fell to a nine-week low of $1,936.90 earlier in the session, after hitting an all-time high of $2,085.40 on May 4. For the week, June gold was off 2% after another 2% loss the prior week and 0.25% the week before that.<\/p>\n

The , which reflects physical trades in bullion and is more closely followed than futures by some traders, was at $1,945.04 by 14:00 ET (18:00 GMT) on Friday, up $4.19, or 0.2% on the day. Spot gold fell to a three-week low of $1,936.85 during the session, after a record high of $2,073.29 earlier this month, according to Investing.com data. For the week, spot gold was down 1.7%, after another 1.7% loss the prior week and 0.3% the week before that.<\/p>\n

\u201cThe short term trend has turned bearish and unless we see signs of a rebound, which requires strong acceptance above the 38.2% Fibonacci level of $1,975 on a weekly closing basis, a further drop to 61.8% Fibonacci level $1,910 can hardly be ruled out,\u201d said Sunil Kumar Dixit, chief technical strategist at SKCharting.com.<\/p>\n

\u201cBut there’s a possibility of gold buyers resurfacing at the test of $1,926 and $1,910 if gold drops to this zone,\u201d Dixit added.<\/p>\n

Craig Erlam, analyst at online trading platform OANDA, was also in the camp of a cracked upside for gold that wasn\u2019t entirely broken.<\/p>\n

\u201cGold\u2019s rough week is ending as some investors seek protection in case debt ceiling talks hit a major roadblock at the 11th hour,\u201d Erlam said. \u201cIt is crunch time for [Washington] DC and a possible TARP scenario [from 2008] could occur when Congress initially failed to pass the bank bailout program, which is why some traders are running to gold ahead of the long weekend. If it weren\u2019t for another round of hawkish [inflation] data, gold would be finishing the week on a much stronger note.\u201d<\/p>\n

President Joe Biden declared Thursday the United States would avoid a disastrous credit default even as lawmakers went on a 10-day break without a deal on raising the nation’s borrowing limit to keep paying the bills. There are seven days until June 1 — the earliest possible point when the government estimates it could run out of money to service its debts — and missed loan repayments would likely spark a recession, roiling world markets. But members of the House of Representatives began hitting the road for the Memorial Day recess after their final vote Thursday morning and are not due to return until June 4.<\/p>\n

\u201cGold is in the danger zone as optimism remains that a debt-ceiling standoff will be resolved and as U.S. economic resilience will force the Fed to keep rates higher for longer,\u201d Erlam said. \u201cGold can benefit if inflation doesn\u2019t prove to be too sticky and the labor market starts to soften. The week ahead will provide clarity on what happens with the U.S. default watch and if the U.S. economy remains too strong and warrants further Fed tightening.\u201d<\/p>\n

Gold was pressured Friday after the Federal Reserve\u2019s favorite gauge for U.S. inflation came in hotter-than-forecast for April, indicating that the central bank will raise interest rates again in June and July versus expectations for a pause.<\/p>\n

All key metrics in the so-called Personal Consumption Expenditures, or , Index rose for last month against forecast levels as the Fed keenly looked for indicators that would compel a hold on its higher-for-longer monetary policy that has already seen 10 rate hikes over 15 months.<\/p>\n

For the year to April, the PCE Index expanded at 4.4% versus forecasts for 3.9% and previous growth of 4.2%. For the itself, it jumped 0.4%, as expected and versus a prior expansion of 0.1%.<\/p>\n

, which strips out volatile food and energy prices, gained 4.7% on an annualized basis versus both the projected and previous rate of 4.6%. On a , it rose 0.4% against the forecast and prior rate of 0.3%.<\/p>\n

\u201c is a problem and the consumer remains red hot,\u201d economist Adam Button said on the ForexLive forum. \u201cThe Fed is going to hike again and now the odds are 58-42% for June and July is 100% with a slight chance of another hike. At some point the Fed will have to pause and evaluate but we’re lapping some very high energy numbers now and it’s not enough to get inflation to a 3-handle. At minimum, the Fed needs to start seeing some monthly numbers at +0.3% or lower.\u201d<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Investing.com — Gold bulls are still counting on another record high if the Chicken Little metaphor of saving the world \u2014 or more precisely, the U.S. economy, from a government debt default or recession \u2014 doesn\u2019t come true. Yet, the path of least resistance for the yellow metal over the past three weeks has been […]<\/p>\n","protected":false},"author":1,"featured_media":2275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[242],"tags":[83],"class_list":["post-14274","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-commodities","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nGold in 3rd weekly loss; Analysts say upside cracked, not entirely broken | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Investing.com -- Gold bulls are still counting on another record high if the Chicken Little metaphor of saving the world \u2014 or more precisely, the U.S.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=14274\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gold in 3rd weekly loss; 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