Gold futures fell by 0.5%

🔸 Recent Performance
Price Movement: Gold futures fell by 0.5% in May, closing at $3,288.90 per ounce, marking the first monthly decline in five months. Despite this, gold remains up 25.1% year-to-date, outperforming the S&P 500's 0.5% gain. 

Weekly Loss: As of Friday, gold was poised for a weekly loss of 1.6%, with spot prices at $3,303.51 per ounce. The strengthening U.S. dollar contributed to this decline, making gold more expensive for overseas buyers. 

🏦 Key Influencing Factors
U.S. Inflation Data: Investors are closely watching the upcoming U.S. Personal Consumption Expenditures (PCE) inflation report, the Federal Reserve’s preferred measure. The report is expected to show a 2.2% increase in April. This data could influence the Fed's future policy decisions, with officials suggesting possible rate cuts later this year. 

Trade Tensions: Renewed trade uncertainties between the U.S. and China have emerged, with U.S. officials criticizing China for not restoring key exports and China accusing the U.S. of discriminatory practices. These tensions have contributed to market volatility, affecting gold prices. 

🔍 Technical Outlook
Support and Resistance Levels: Analysts suggest that if gold remains below the $3,300 level, it could move towards the support range of $3,235–$3,245. Conversely, a decisive breakout above $3,350–$3,360 may attract bullish momentum, potentially targeting a retest of April’s all-time high just below $3,500.