Cautious Rise in Spot Gold

Ahead of the Federal Reserve's interest rate decision on May 3rd, members of the Federal Open Market Committee have entered a period of silence. Global markets are looking for direction based on macro data ahead of the critical Fed interest rate decision. After the US PMI data came in above expectations on Friday, the dollar gained strength globally, while gold prices remained under pressure and fell to levels around $1,970 USD. However, spot gold turned upwards at the start of the new week due to a decline in the dollar, and the price of gold per ounce tested $2,000 USD this morning with the opening of Asian markets. On the second trading day of the week, we can see that the price of an ounce of gold remains below $2,000 USD. We can say that the recent movement in the dollar has had a greater effect on gold prices. On the other hand, inflows into gold ETFs are increasing, and central bank purchases are at record highs. Looking at Wall Street, Q1 2023 earnings reports have started to be released. The company reports are giving a mixed signal overall. We can say that there is sectoral differentiation in company reports. The earnings reports of mega-capitalized companies to be announced this week can be a guide to gauge the pulse of the real sector and signal recession expectations for the market. With the increasing concerns of a recession, we can see limited-positive pricing in gold before the critical Fed interest rate decision.
 

Will All-Time Highs Be Broken?

In terms of technical analysis, we can track support levels at $1,960 USD and $1,930 USD for gold per ounce. If the upward trend continues and the $2,040 USD level is exceeded, the $2,070 USD level will come into play. Breaking the all-time high levels will also put speculative short positions under pressure.