Gold Price Analysis: XAUUSD to be in demand as store of value given record inflation in EU – Commerzbank

FXStreet Insights Team FXStreet

Gold has risen slightly to a good $1,860 at the start of the new week of trading. Economists at Commerzbank expect the yellow metal to remain resilient as eurozone inflation is set to hit a new record.

Gold to be lent buoyancy amid renewed interest from speculative financial investors

“After four consecutive weeks of outflows from the gold ETFs tracked by Bloomberg, inflows (of just short of four tons) were registered on balance again last week. Speculative financial investors have also seemed more open to gold of late, expanding their net long positions by 40% to 61,000 contracts in the week to 24 May, according to the CFTC’s statistics. If this turns out to be more than just a flash in the pan, gold is likely to be lent buoyancy from this side.”

“Gold should be in demand as a store of value given that the Eurozone inflation data due to be published tomorrow are likely to show a renewed surge in the inflation rate to a record high.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD recovers toward 0.7000 amid improving mood

AUD/USD is firming up toward 0.7000 in Asia on Tuesday, helped by improving market mood. A pause in the US Dollar rebound also aids the pair's upside. However, geopolitical risks and caution ahead of AI tech earnings report could limit the pair.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold just failed at $4,150. This is the next stop

Gold prices trade without a clear direction on Tuesday, hovering around the $4,170 region per troy ounce and still struggling to regain upside traction following Monday’s pullback. In the meantime, lower US Treasury yields and a marked pullback in the US Dollar come in tandem with the yellow metal’s price action.

Crypto Today: Bitcoin, Ethereum, XRP tick lower amid mixed ETF flows

Bitcoin is trading above $81,000 on Tuesday, aligning with a lethargic tone in the broader cryptocurrency market. Altcoins, including Ethereum and Ripple, reflect Bitcoin’s lock-step price action, trading below $2,400 and $1.30, respectively.

Markets at a turning point: Bitcoin, Gold, FX and Tech react to a heavy macro week

The new trading week opens with a mixed but revealing picture across global markets. Indices, commodities, FX, tech stocks, and cryptocurrencies are all sending one message: risk appetite is alive, but it is cautious, selective, and highly sensitive to macro signals.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.