Is the Gold bear market over? Trade setup idea for a potential breakout
Hello, fellow traders!
📰 Key economic updates:
Japan Trade Balance
Japan's trade balance for May 2024 showed a significant deficit of ¥1.221 trillion, slightly better than the expected ¥1.3 trillion. This indicates Japan is importing more than it is exporting, leading to an outflow of yen.
What it might mean for the Gold market:
A weaker yen makes Gold more expensive in yen, potentially driving up Gold prices in Japan.
A weaker yen can make imports more expensive, potentially leading to higher inflation in Japan. If inflation fears rise, demand for Gold might increase, pushing up its price.
he Bank of Japan might adjust policies to address yen weakness and inflation, which could make Gold more attractive to investors.
UK CPI
The UK's CPI for May 2024 came in at 2.0%, down from 2.3% in April and in line with the forecast. This is the first time the CPI has hit the Bank of England's target since 2021, causing the GBP to inch up today.
World Gold Council Survey highlights rising gold reserves
The World Gold Council's survey indicates that a significant number of central banks plan to increase their Gold reserves over the next year, even with high current prices.
This news points to a bullish outlook for the Gold market.
When central banks buy more Gold, it often boosts investor confidence in Gold as a stable investment, potentially leading to higher prices.
📊 Let’s look at the data:
Today, gold continued its short-term rise, hitting around 2335. However, despite the rise, gold hasn't shown significant strength and remains volatile without a clear breakthrough.
Let’s take a closer look at the charts.
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