Although the price of gold will fall back to $1,300 per ounce this week, May may indeed be a good time for the gold market to perform well.
According to Orchid Research, the gold market should have risen long ago, and this month may be the time to break through.
Affected by trade disputes, the price of gold rose sharply this week. On Tuesday, spot gold prices rose to a new high of $1,303 per ounce.
The agency said the dollar will be under pressure this month, influenced by inflation and the Fed's attitude.
Although there has been no breakthrough in the gold upside, there is solid support in the downside of the $1275 to $1,285/oz area.
“In the short term, we are bearish on the US dollar. The environment in which inflation is suppressed will force the Fed to maintain its dovish position for a longer period of time, which will eventually bring downward pressure on the US dollar.”
(Article source: Gold headline)