Gold is rebounding after establishing a short-term cycle low on May 15th. This recovery is expected to extend into next week before potentially reversing and heading toward new lows in June. Over the medium term, our analysis supports a pullback toward the $2,800 level before the next up leg later this year.

Gold futures turned lower Thursday after a three-day winning streak, as the dollar strengthened and investors locked in profits after prices touched a two-week high earlier in the session. The U.S. dollar index rose 0.