On Wednesday, May 17th, during the Asian session, spot gold traded in a narrow range and is currently around $1989.46 per ounce. Expectations of a rate cut this year were suppressed by speeches from Federal Reserve officials, leading to an increase in the US dollar index and bond yields, which put pressure on the gold price. Concerns about US debt default also eased in the market, weakening the demand for gold as a safe haven. Overnight, gold prices broke below the important support level of $2000, and the next move is likely to test the 55-day moving average support around $1968.38.
On this trading day, attention should be paid to the preliminary annualized figures for US building permits in April and the annualized figures for US housing starts in April. It is also important to monitor speeches from European Central Bank officials and news related to the G7 summit.
