On May 29, the precious metals market continued to fluctuate within a high range, with gold undergoing repeated tests around a key resistance level in the short term. A report on the hourly chart for gold, updated at 20:06 on May 28 by Investing.com, indicated that gold futures encountered significant resistance near $4,530. The real-time quote was approximately $4,529.82, marking a slight intraday decline of 0.06%. The session's trading range was shown to be roughly between $4,519.50 and $4,550.65, while silver traded around $76.135, rising 0.29% on the day. The report suggested that if a decisive breakthrough above the $4,530 area cannot be achieved, there is a risk of a bull trap in the near term. According to CBCX, gold is not merely undergoing a correction but is reassessing the balance between the US dollar, yields, inflation data, and technical pressures at elevated levels.
From a trading rhythm perspective, CBCX believes the current focus for gold is not on daily gains or losses but on whether it can effectively consolidate above the resistance zone. As prices approach previous areas of dense trading activity, capital is more likely to exhibit divergence. Silver maintains relative resilience, indicating that weakness is not synchronized across the precious metals complex. Market data suggests that if gold fails to break through the $4,530 to $4,590 region, it may continue to experience wide-ranging fluctuations in the short term.
On the macro level, the coexistence of slowing economic data and persistent inflation provides support for precious metals while also subjecting them to pressure from yields. Reports indicate that a slowdown in the month-on-month growth rate of core inflation helps moderate interest rate expectations, but annual inflation remains above target levels, prompting caution in the market regarding rapid monetary easing. Analysts believe this data combination will make gold more reliant on technical level confirmations rather than being driven solely by sentiment.
Moving forward, key observations should focus on gold's ability to find support above $4,400 and whether a breakout can be accompanied by a simultaneous increase in trading volume. If the upward momentum fails to sustain, prices may retreat within the range for consolidation. If the resistance is effectively breached, the recovery potential for the precious metals sector could expand further. CBCX suggests that for market participants, waiting for confirmation at critical levels is more aligned with the current volatile environment.
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