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Winning Run Continues Ahead Of US CPI & FOMC Minutes

GOLD

Spot gold reached a new high ($2365.35) on Tuesday, before closing 0.6% higher at $2352.78, as demand remained strong ahead of tomorrow’s US data. Bullion is little changed so far in the Asia-Pac session.

  • Tuesday’s move was supported by lower US Treasury yields ahead of today’s US CPI & FOMC Minutes. (See MNI U.S. CPI Preview: Apr 2024 - Key Framing Of Trends With June Cut Seen As A Coin Toss here)
  • According to MNI’s technicals team, the next objective is $2376.5, a Fibonacci projection. Initial firm support is at $2222.4, the 20-day EMA.
  • (AFR) One of the reasons for their price strength is that investors are increasingly using gold and oil to hedge against economic uncertainty and geopolitical tensions. So far, the rally in the precious metal has been mainly driven by central bank buying, particularly by the People’s Bank of China. (See link)

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