For now, the gold market is ignoring its perfect storm of low interest rates, more government spending, and rising inflation expectations.
“Gold is well-positioned to break above the $1,800 level.
That could drive real rates lower, which would be a good catalyst for gold,” Melek said.
The ISM manufacturing PMI is due out on Monday, and the April jobs report is scheduled for Friday.
Inflation is really going to come, especially with the new infrastructure bill,” said Phoenix Futures and Options LLC president Kevin Grady.
“There is inflation, and that is why gold should be going higher.
“You have sellers emerging at those levels.
Before gold can move above $1,800 on a sustained basis, the market will need to be convinced that the U.S.
The rallying stock market amid a strong earnings season is also holding back gold, Melek added.
The 100-day moving average at $1,799 is a bit like a brick wall, Melek said.
Gold has a chance to finally tackle the $1,800 next time it approaches the mark, Lusk said.