Gold Volume Reversal at Lows, $4,242 Key Trigger Ahead of FOMC Week
Gold shows a volume reversal at its lows, with a breakout trigger at $4,242 as FOMC week begins. May CPI came in at 4.2% year-on-year, the highest since April 2023, up from 3.8% in April — a seemingly bearish headline for gold, but the details may shift the outlook.
Gold prices have exhibited a volume-driven reversal near the lows, shifting the technical picture. The $4,242 level is now positioned as the critical breakout trigger as markets enter FOMC week.
On the macro front, May CPI data came in at 4.2% year-on-year, the highest reading since April 2023, accelerating from 3.8% in April. While this headline appears bearish for gold, the underlying details of the report may paint a different picture for the metal's trajectory.
The combination of a volume reversal pattern and the upcoming Federal Reserve decision keeps gold in focus. Traders will watch for a sustained move above $4,242 to confirm bullish momentum.
Source: FXStreet Forex News