The US Consumer Price Index (CPI) for April, compared to the same period last year, recorded 3.8%, higher than expected and the previous reading, marking the highest level since May 2023. Considering that US crude oil prices remained high in May, and recalling that the lowest price for US crude oil in April was $78.75 per barrel, while the current low in May is $86.84 per barrel, the May low is $8 per barrel higher than the April low, suggests that the overall CPI for May is unlikely to see a significant decline. Concerns that the Federal Reserve needs to consider raising interest rates to curb inflation are likely to increase, putting downward pressure on gold prices in the short term.

A short position can be established around $4,781, with a short-term target of $4,673 for profit-taking and a stop-loss at $4,801.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com