Gold’s Long-Term Bullish Trend Still Intact Despite Recent Pullback

investing.com:

The strong trend for gold unravelled somewhat at the back end of last week thanks to a strong US dollar. As the metal retreated from the record high it had hit earlier in the week, it formed some mild bearish price action in the process, denting its short-term technical outlook.

However, while it suffered a bit of blow in the short-term, there’s no doubt in my mind that its long-term trend is still bullish and that prices could be heading to a record in the not-too-distant future.

As well as profit-taking, the US dollar was also responsible for gold’s weakness in the second half of last week. For gold to rise to new highs, the greenback will need to start trending lower again.

Last week saw the Dollar Index recover to close in the positive. Despite the Federal Reserve maintaining a dovish stance, the dollar strengthened, buoyed by external factors such as the surprise rate cut by the Swiss National Bank and dovish holds from the Bank of England and Reserve Bank of Australia.

Declines in the pound, Aussie dollar, and euro further supported the dollar's rise, alongside positive US economic indicators like the latest PMIs, existing home sales, and jobless claims. Nevertheless, these indicators are unlikely to deter the Fed from considering rate cuts in June, especially if inflation remains low.

Looking ahead, the upcoming economic calendar appears relatively calm after recent volatility driven by major macroeconomic releases and central bank meetings. Attention will shift to the Fed's favorite Core PCE Price Index on Friday, followed by the Non-Farm Payrolls (NFP) report and Consumer Price Index (CPI) data in the following weeks.

The March US data, slated for early April release, holds significant influence over the