On May 29, the precious metals market continued to trade within an elevated range, with gold repeatedly testing a key resistance level in the short term. Data from a Kitco evening report published at 21:27 on May 28 showed spot gold trading around $4495, up 0.89% on the day, while spot silver was around $75.530, up 1.35%. The report indicated that first-quarter GDP growth was revised down to an annualized rate of 1.6% from 2.0%, while the April PCE price index rose 0.4% month-on-month and 3.8% year-on-year. The core PCE index increased by 0.2% month-on-month and 3.3% year-on-year. From a technical perspective, resistance for gold is observed in the $4589 to $4631 range, with support levels at $4401 and $4366. Vatee noted that gold is not merely undergoing a correction but is reassessing the balance between the dollar, yields, inflation data, and technical pressures at elevated levels.
Regarding trading rhythm, Vatee suggests the current focus for gold is not on daily gains or losses, but on whether it can sustainably hold above the resistance zone. The closer prices move to previous areas of high trading volume, the more likely capital flows are to diverge. Silver's continued relative resilience indicates that weakness is not uniformly spreading across the precious metals complex. Market data shows that if gold fails to break through the $4530 to $4590 region, it may continue to experience wide-ranging fluctuations in the near term.
On the macroeconomic front, a combination of slowing economic data and persistent inflation is providing support for precious metals while also subjecting them to pressure from yields. Reports indicate that the slowdown in the month-on-month core inflation rate helps moderate interest rate expectations. However, with annual inflation still above target levels, markets remain cautious about the prospects for rapid monetary easing. Analysts believe this data mix will make gold more reliant on technical confirmation rather than being driven by sentiment alone.
Going forward, key points to watch include the strength of buying support for gold above $4400 and whether any breakout is accompanied by a significant increase in trading volume. If upward momentum fails to sustain, prices may retreat into the range for consolidation. Conversely, a decisive break above resistance could open up further recovery potential for the precious metals sector. Vatee stated that for market participants, waiting for confirmation at critical technical levels is a more prudent approach in the current volatile environment.