The price of gold advances at maximum one week beyond $ 3,350 due to a weaker risk and a remarkable USD weakness

• The price of gold attracts new buyers on Monday in the midst of a modest weakness of the USD.
• The US fiscal concerns and Fed feature cuts keep the USD’s bulls on the defensive.
• Commercial uncertainties and geopolitical risks benefit the Xau/USD.

The price of gold (Xau/USD) rises to a maximum of a week, exceeding the level of $ 3,350 during the early European session on Monday and seems to be prepared to continue rising backed by a combination of factors. The Personal Consumer Expenses Index (PCE) published on Friday pointed to relief signs in inflationary pressures in the US and reinforced the case for more rates cuts by the Federal Reserve (Fed). This, in turn, causes new US dollar sales (USD) and acts as a favorable wind for yellow metal without yield.

Meanwhile, concerns about the worsening of the US fiscal situation, the geopolitical risks derived from the prolonged war between Russia and Ukraine and conflicts in the Middle East, as well as the renewed commercial tensions between the US and China, moderate the appetite of investors by more risky assets. This is evident in a generally weaker tone around variable rental markets and turns out to be another factor that benefits the price of gold as a safe refuge. In addition, a movement beyond the obstacle of 3,325-3.326 favors the bulls of the Xau/USD and supports the perspectives of new profits.

What moves the market today: the price of gold continues to rise to a weaker USD, reviving the demand for safe refuge

• The US Economic Analysis Office reported Friday that the Personal Consumption Price Index (PCE) was cooled at 2.1% year -on -year in April, or the lowest since February 2021. Meanwhile, the PCE price index of the underlying PCE, which excludes volatile food and energy prices, stood at 2.5%, below the increase of 2.7% recorded in March.
• The operators continued to bet that the Federal Reserve will cut the indebtedness costs in September and are valuing the possibility of another rate cut in December. The governor of the Fed, Christopher Waller, said on Monday that the feat cuts are still possible later this year, even with the Trump administration tariffs that probably temporarily increase the pressures on prices.
• Investors now wait for the speeches of several FOMC members this week, including the appearance of the president of the FED, Jerome Powell, later this Monday, to obtain clues about monetary policy perspectives. This will play a key role in influencing the dynamics of the price of the American dollar in the short term and determining the next directional movement of the price of gold, which does not pay interest.
• Ukraine intensified the war with one of the greatest drones attracted to Russia before the second round of direct peace conversations in Istanbul later today. Ukraine carried out important drones against Russian military air bases in five regions on Sunday and reached more than 40 Russian military planes, which included long -range bombers capable of carrying nuclear weapons.
• Israel flatly denied his participation in the mortal incident that charged at least 30 Palestinian lives and accused Hamas of shooting against hungry civilians gathered to receive humanitarian aid in southern Gaza. This occurs in the middle of an avalanche of contradictory reports and maintains the geopolitical risks at stake, providing even more support to the Xau/USD of safe refuge.
• The operators now expect important macroeconomic publications of the USA scheduled for the beginning of a new month, starting with the ISM manufacturing PMI on Monday. Apart from this, the speech of the president of the FED, Jerome Powell, could influence the dynamics of the USD price and contribute to generate short -term trading opportunities around the merchandise.

The price of gold could accelerate the intradic movement upwards once the immediate obstacle of 3,326-3.328 $ is exceeded

From a technical perspective, a sustained force above the resistance zone of 3,326-3.328 could be seen as a new trigger for the Xau/USD bulls in the context of the bounce last week since the critical support of the exponential mobile average (EMA) of 200 periods in the 4-hour graph. The subsequent movement above the intermediate resistance of 3,345-350 could allow the price of gold to recover the $ 3,400 mark. The impulse could extend even more towards the next relevant barrier near the region of 3,432-3.434.

On the other hand, the weakness below the round figure of $ 3,300 could find some support near the area of ​​3,280-3.278. Any additional drop could be seen as a purchase opportunity and remain limited near the 3,258-3.257 region. The latter represents the EMA of 200 periods in the 4 -hour graph, which if it breaks decisively could make the Gold Be vulnerable to accelerate the fall even more towards the 3,200 $ mark.