Focus on XAUUSD today – 15th May 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the XAUUSD for 15th May 2024. 

Key Takeaways 

• U.S. PPI: US PPI increased by 0.5% month-over-month and 2.2% year-over-year in April, in line with market expectations. Traders reduced their bets on Fed’s interest rate cut in September after Chair Jerome Powell called the latest data reading “mixed bag”. 
• Powell’s view: Powell reiterates that interest rates may be required to be kept at high levels for longer periods. While he believes that inflation may subsequently depreciates to lower levels, he added that US economic growth remains solid while labor market remains resilient.  
• U.S. CPI: The US is expected to release its latest CPI reading later today, which may skew the Federal Reserve view and policy guidance. A higher-than-expected reading may force the Federal Reserve to maintain its view and reduce the chances for a rate cut in September.  

Technical Analysis 

Daily Chart Insights 

• Stochastic Oscillator: The indicator threads above the midline while starting to form bearish signal, indicating possibility of a reversal for short-term.  
• Convergence range: Gold price remains traded within a narrowing wedge, subject to strong bullish and bearish momentum from either side. For the time being, it is advisable to wait for a breakout from either side to determine its next course of action.  

4-hour Chart Analysis 

• Stochastic Oscillator: The indicator rebounds prior to oversold region while forming a bullish signal. However, with the lack of momentum via observation, gold price may not able to complete their bullish cycle in the near-term.  
• Uptrend channel: Gold price rebounds from lower level after being rejected near the 33-MA and 65-Ma lines. Nonetheless, as recent rise is associated with wave 5 via Elliott Wave theory, it may have the possibility to form divergence which would warrant for a trend reversal thereafter.  

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 2280, 
• Bullish Scenario: Bullish sentiment prevails above 2280, first target 2430, second target 2510; 
• Bearish Outlook: In a bearish scenario below 2280, first target 2230, second target 2150. 

Conclusion 

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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.