XAUUSD - Forming a bullish pattern

Today, gold prices slightly declined, returning to around $2377 after maintaining high levels for nearly three weeks. This movement results from investors taking profits following a recent surge in prices. Additionally, the recovery of the U.S. dollar, which increased by 0.2% after hitting a multi-month low, also contributed to the pressure on gold. The U.S. dollar's rebound came as the latest data showed U.S. consumer prices in April rose less than expected.

Meanwhile, the Federal Reserve Chairman stated that the positive news regarding cooling inflation is insufficient for the U.S. central bank to make an early decision to cut interest rates.

Despite the dip, most indicators and long-term trends remain optimistic about gold's future prospects, suggesting that the precious metal may soon reach new record highs in the coming months. Although the Fed is not ready to start an easing cycle, it is clear they are also not inclined to raise interest rates further, which ultimately will provide solid support for the precious metal.