According to Kitco - World gold prices fell last night as the market continued to face pressure from high inflation data in the US. At the time of the survey (9:11 PM on May 13 - Vietnam time), spot gold prices fluctuated around 4,677.1 USD/ounce, down 0.79%.
Last night, gold traded in the range of 4,678.40-4,727.60 USD/ounce. Despite losing the important technical milestone of 4,700 USD/ounce, gold prices still maintained above the bottom established in the night. For silver, the price fluctuated from 82,710-87,920 USD/ounce, still higher than the breakthrough zone of the beginning of the week but significantly narrowed the increase momentum.
The biggest pressure on the precious metals market comes from the US's April Producer Price Index (PPI) report. According to published data, the final producer price increased by 1.4% in April, higher than the 0.7% increase in March and the strongest increase since March 2022.
Compared to the same period last year, PPI increased by 6%, the highest level since the end of 2022. Commodity prices increased by 2%, while services increased by 1.2%.
Notably, energy prices continue to be a factor causing inflation to increase. Output energy prices increased by 7.8% in April, especially gasoline prices increased by 15.6%. In the intermediate demand phase, crude oil prices increased by 11.3%.
This development makes the market worried that the Fed will continue to maintain high interest rates longer than expected. The strengthening USD along with rising US bond yields has reduced the attractiveness of gold - a non-performing asset.
However, analysts believe that inflationary pressure from energy still maintains a long-term supporting role for gold and silver, as investors continue to look for risk-weighted assets.
In addition to inflation, the market is also closely monitoring the tense developments between the US and Iran. Although the fragile ceasefire between the two sides is still maintained, oil prices are still fluctuating strongly above the threshold of 100 USD/barrel due to concerns about supply disruptions and risks in the Strait of Hormuz.
According to analysts, the conflict in the Middle East no longer creates a clear shelter for gold as in the early stages, but contributes to pushing energy prices up, thereby increasing global inflationary pressure.
In foreign markets, WTI oil traded around 97.37 USD/barrel, while Brent oil was at 106.67 USD/barrel. The USD Index increased slightly. The yield of 10-year US Treasury bonds fluctuated around 4.485%.
Technically, analysts believe that gold buyers need to bring prices back to the resistance zone of 4,711-4,723 USD/ounce to strengthen the upward trend. If this zone is surpassed, gold prices may head towards the levels of 4,749 USD and 4,789 USD/ounce.
In the opposite direction, if the support zone of 4,680-4,702 USD/ounce is lost, the gold price could retreat to 4,648 USD/ounce, even retesting the 200-day moving average around 4,329 USD/ounce.
For silver, the near resistance zone is at 87.26-89.73 USD/ounce. If it crosses this zone, silver prices may head towards the 90.02 USD/ounce mark and further to the 91.34-98.49 USD/ounce zone. Meanwhile, the important support zone is currently at 84.90 USD/ounce and 84 USD/ounce.
