Gold is clinging to a marginal monthly gain for May, with bullish investors eager to stretch its winning streak into a fifth consecutive month. However, persistent concerns over the U.S. fiscal outlook and the impact of fresh tariffs have dulled gold’s appeal.
Since peaking in late April, spot prices have been trending lower, marked by a series of descending highs and lows – mirroring the broader return of risk appetite in global markets.
Traders will be watching today’s U.S. PCE inflation data closely.
A softer-than-expected reading could ease stagflation concerns and revive hopes for Federal Reserve rate cuts, potentially offering gold some near-term relief.
To regain its bullish footing, spot gold needs to break decisively above its recent cycle high of $3,366. Until then, doubts may linger over the metal’s ability to reverse its downward momentum.
For now, gold looks set to remain rangebound between $3,000 and $3,500, awaiting clearer signals from the Fed on the trajectory of interest rates.
Brent crude is poised for a second straight weekly decline, despite finding temporary support at its 21-day moving average.
All eyes are now on this weekend’s OPEC+ meeting, where markets are bracing for the possibility of another substantial production increase for July.
Reports suggest the cartel may introduce an additional 411,000 barrels per day into a market already grappling with weakening demand prospects, exacerbated by the growing impact of trade tensions.
If confirmed, such a move could push Brent back below the $60 threshold, testing the resilience of oil bulls once again.
