Gold futures rose early Monday, as investors shook off a continued rise in Treasury yields as the focus appeared to remain on worries over rising inflation pressures.
A busy week of data is ahead, with U.S. inflation running at its hottest in nearly 40 years.
The New York Fed’s measure of one- and three-year inflation expectations are due at 11 a.m. Monday.
The March consumer price index is due Tuesday morning, while the producer price index for last month is set for release on Wednesday. Thursday brings the University of Michigan preliminary April consumer sentiment readings, including its gauge of five-year inflation expectations.
The technical scenario for gold is improving, said Carlo Alberto De Casa, external market analyst at Kinesis Money, in a note.
“The new week started with the gold price jumping above the key resistance of $1,950 an ounce and trying to leave the lateral trading range between $1,890 and $1,950 of the last few sessions,” he wrote.
“This positive movement is confirming the growing bullish pressure already seen in the last few trading sessions, when gold approached the $1,950 threshold without being able to remain above it at the end of the day. Therefore, this movement can be read as an improvement of the momentum and a clear surpass of the $1,950 mark could open space for further recoveries, confirming the bullish trend,” he said.
The war between Russia and Ukraine, meanwhile, will remain a catalyst, with sanctions against Russia capable of amplifying inflationary pressures, De Casa said.