■ Revised US economic growth figures spark gold's rebound from three-week lows as rate cut expectations resurface
■ Asian investors accumulate bullion as currency hedge,litecoin login creating new demand dynamics beyond traditional dollar correlation
■ Chart patterns reveal bearish continuation signals despite precious metal's historical resilience
The XAU/USD pair stabilized near $2,340 during Friday's session, consolidating after Thursday's rebound from $2,322 lows. This recovery followed downward revisions to US first-quarter GDP figures, with annualized growth adjusted to 1.3% from initial 1.6% estimates.
Market participants interpreted the economic cooling as potentially limiting inflationary pressures, reviving speculation about Federal Reserve policy easing. The non-interest-bearing yellow metal typically benefits from declining rate environments, though technical formations currently paint a more cautious picture.
Macroeconomic Crosscurrents Influence Bullion
Thursday's GDP revisions revealed softer consumer spending patterns, a development that could help moderate price pressures across the economy. Treasury markets responded accordingly, with 10-year yields retreating from 4.63% peaks to 4.55% following the data release.
Federal Reserve officials provided nuanced commentary on the policy outlook. Atlanta Fed President Raphael Bostic suggested additional hikes might prove unnecessary, while Chicago's Austan Goolsbee expressed optimism about slowing housing inflation. New York Fed's John Williams described current policy settings as appropriately restrictive.
Friday's PCE inflation data loomed as the next potential catalyst for gold markets. As the Fed's preferred inflation metric, unexpected deviations from forecasts could spark volatility despite coming after CPI and PPI releases for the same period.
Asian Demand Emerges as Structural Support
TD Securities analysis highlights shifting demand patterns, with Asian investors increasingly treating gold as protection against currency depreciation. Chinese gold ETF inflows reportedly accelerated at April-like pace despite dollar strength and yield movements.
This development suggests traditional inverse dollar correlations may be weakening, with regional buyers potentially creating price floors during periods of USD appreciation. The dynamic introduces new variables for traders monitoring support and resistance levels.
Technical Perspective: Bearish Formations Dominate
Chart analysis reveals gold broke downward from a slanted rectangular pattern between May 24-27, potentially completing bearish continuation formation. This technical development projects downside targets between $2,303-$2,295, with Thursday's lows at $2,322 serving as near-term confirmation level.
The 4-hour timeframe now shows consistently lower highs and lows, establishing short-term downward bias. However, medium and long-term trends maintain bullish structure, creating tension between opposing time horizons.
Traders await either breakdown confirmation below $2,322 or reversal signals above $2,385 trendline resistance. Convincing recovery would require either substantial bullish candlestick or consecutive upside closes to negate current technical warnings.
