Gold traded higher yesterday, jumping to $2,346.57 after reports that major central banks were seen preparing to cut interest rates and more cuts are likely in the future.
Lower interest rates can provide an opportunity for gold to climb higher because it is a safe asset for investors to reap profits.
Meanwhile, the price of gold is now at $2,350.52, which is up by 0.18% since it opened in the early Asian trading session this morning.
Ceasefire negotiations between Israel and Hamas are seen to have reached an impasse after the Zionist forces continued their operation to invade the Rafah border in southern Gaza.
The conflict between Ukraine and Russia is also getting worse after the front lines of the United States' allied forces have strengthened their military strength. This will continue to support the price of the yellow metal as a safe investment.
The price of the metal commodity also rose as central banks around the world began to prepare to cut interest rates after keeping them high for several years to fight inflation.
It also saw gains yesterday after Chinese trade data showed a bigger-than-expected increase in Chinese exports of 1.5% in April, rebounding from a 7.5% decline in the previous month.
In addition, import data increased by 8.4%, surpassing the forecast of 5.4% and a decrease of 1.9% compared to before. China is a major country in the global market for gold so strong economic data from that country can have an impact on its value.
From a technical point of view, XAU/USD has rebounded and pulled back from a small range level around $2,326. It currently finds support from the 200 and 50 Simple Moving Averages (SMA) on the 4-hour chart at $2,310.
This situation has the potential to fall back to the base of the range at around $2,280.
If there is a reverse bounce, the yellow metal has a chance to break through the conservative target increase at $2,353 and continue on its way to the $2,370 level.
