Spot gold price increased on Friday and trading above support level of $ 2311 an ounce during the European session. The economic data issued by the United States provided strong gold support as a major yellow mineral engine. 

- Economic data has given some assurances about the use of interest rates, which is a positive gold scenario because it reduces the cost of alternative opportunities to keep the assets that are not returning.

- The previous reading comes after the Federal Reserve reduced the number of times the interest rates in 2024 to one time instead of three times on Wednesday, and the Federal Reserve Chairman (Jerome Powell) believes in supporting a data-based approach to move forward.

- Consumer price index data came conflicting with strong Nonfarm Payroll numbers (NFP) on Friday, which reflected the growth of the labor market and the high wages in the United States. These factors are expected to put budget pressure on inflation, which keeps interest rates high. 

- Gold was weaved this week after the Chinese People's Bank revealed that it had stopped buying the precious metal between the end of April and May. This is the first time in 18 months that the Chinese People's Bank has not added to its gold reserves and indicated that a price ceiling may have been reached. At the same time, the continuation of strong demand from consumers in China may push gold up. Then the general image is still different for gold traders, where today they are waiting for the issuance of the first Michigan index of consumer confidence in the United States for June.

- Gold and broader metal prices fell in recent sessions after hints from the Federal Reserve that it is expected to cut interest rates only once in 2024, compared to the previous expectations of three discounts.  The yellow metal recorded some gains after the consumer price index data was expected to the dollar, then the traders eventually returned to the acquisition of the dollar after the expectations of the Federal Reserve. Treasury bond returns are also one of its lowest levels earlier this week.

- On the other hand, silver futures decreased by 0.2 % to $ 28.992 an ounce.

Gold's Analysis

The yellow metal is still moving above the support level of $2,311 an ounce. An H4 close above that level increased bullish momentum ahead to resistance levels 2,330 and 2,350. If the price breaks out 2,350 it means the possibility of climbing towards the psychological resistance level of $2,400 an ounce.

In an alternative scenario, breaking the support level of $2,311 presses gold towards more declines towards the support level of 2,296 for the first goals, and the lowest stability at this level means more declines to the level of $2,285 as a second goal, then $2,250 an ounce as a last sale goal.
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