Huitong Financial APP News--On Monday (May 17), gold prices hit a record high after April, and spot gold closed up 0.0% on the dayplaycandycrushforfree. 7% to US$2,430.79 per ounce, up from US$2,449.89 at the beginning of the sessionplaycandycrushforfreeA new historical record.
On Monday, the precious metals market was filled with many factors that were positive for gold. A series of factors, from expectations of U.S. interest rate cuts, China's stimulus measures to geopolitical tensions, all boosted demand for gold. This momentum drove gold to hit a record high. Among them, the primary driving force for the rise in gold prices came from the weakening of the US dollar due to the rising expectation that the Federal Reserve would cut interest rates soon, which greatly boosted market sentiment for gold. Data released last week showed that U.S. consumer prices rose lower-than-expected in April, signaling a return to a downward trend in inflation, boosting expectations for a rate cut in September. Driven by this atmosphere of expectations, gold once again exploded in a strong bull atmosphere, leaving "a lot of non-traders calling (brokers) to buy futures or make physical delivery." For a time, the demand for gold seemed to burst. In addition, reports on Monday that Iranian President Lehi was killed in a helicopter crash have heightened concerns about geopolitical conflicts. Risk aversion has continued to heat up and intensified safe-haven buying of gold. At the same time, some analysts also pointed out that the surge in gold is related to China's announcement of "historic" measures to stabilize the crisis-hit real estate industry. China is a major consumer of gold and other industrial metals.
On the technical level, the International Golden Week surged and fell back to maintain a strong and volatile trend, with the daily line recording a longer and slightly positive line. On the daily chart, the price of gold climbs closely to the upper trajectory of the Bollinger Band Channel, and the random indicators remain volatile and upward. The overall daily moving average is in a relatively regular and divergent arrangement, maintaining the pattern of daily levels. If the historical high of US$2,449.89 set overnight is further crossed, the forward target is expected to target the US$2500 mark. In the short term, we need to guard against the blocking risk of adjusting short positions.
Bank of China Guangdong Province Branch Wang Gang
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