XAUSUD might be headed towards it’s best monthly close

XAUUSD is moving higher towards $2050 after US PCE reading came in line with expectations.

If growth continues, gold may see the highest close in a month.

In the subsequent commentary some Fed officials stated that they are ready to start cutting interest rates if needed but emphasized that there is no urgency in it for the time being.

Despite still persistent inflationary risks, the markets have seen this as a positive sign resulting in the larger buying pressure for the bullion.

At the moment the markets are implying a 66.3% (+3% since PCE release) chance of a rate cut in June.

Lower interest rates may benefit zero-yielding gold.

From the technical perspective

Gold is trading above key simple moving averages (21, 50 & 100-period SMAs), underscoring the current strong bullish momentum.

An immediate resistance – target level is set at $2050 round number (yesterday’s high), while to the downside the 50-period SMA (~2033.069) is set to provide an immediate support.

Relative strength index indicator is positioned well below (60.03) the upper boundary (>70 – overbought, <30 – oversold), indicating a potential for further upward movement.