Fundamentals:
"Looking ahead, mounting signals of economic vulnerability, the Fed’s plans to start easing, and the emerging downtrend in the U.S. dollar, should be bullish for precious metals, at least in theory. However, given the significant rally already seen in the space this year and its detachment from fundamentals, it would not be surprising to see gold continue to deflate or trade sideways, bucking tailwinds.
In terms of upcoming catalysts, the U.S. economic calendar lacks major high-profile events and looks relatively quiet in the week ahead, implying that volatility is unlikely to surge and may stay contained for now. However, this picture could change later this month with the release of the April consumer price index, scheduled for May 15. Any surprises in the data could again alter sentiment and trigger sharp price swings."
"Looking ahead, mounting signals of economic vulnerability, the Fed’s plans to start easing, and the emerging downtrend in the U.S. dollar, should be bullish for precious metals, at least in theory. However, given the significant rally already seen in the space this year and its detachment from fundamentals, it would not be surprising to see gold continue to deflate or trade sideways, bucking tailwinds.
In terms of upcoming catalysts, the U.S. economic calendar lacks major high-profile events and looks relatively quiet in the week ahead, implying that volatility is unlikely to surge and may stay contained for now. However, this picture could change later this month with the release of the April consumer price index, scheduled for May 15. Any surprises in the data could again alter sentiment and trigger sharp price swings."
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