On Wednesday (May 21), due to the weakening of the US dollar and the rise in safe-haven demand, the international gold price rose to its highest point in more than a week. US President Donald Trump's failure to convince opponents within the Republican Party to support his massive tax cut bill also became one of the supporting factors. As of press time, spot gold rose 0.65% to around $3,310, with an intraday increase of more than $20, holding yesterday's nearly $60 increase.
The US dollar index fell to a two-week low, making gold denominated in US dollars cheaper for investors holding other currencies. Market sentiment turned cautious, driving safe-haven funds into gold. Previously, Moody's downgraded the US sovereign credit rating, and President Trump's promotion of a massive tax cut bill is expected to be passed by Congress, which has triggered market concerns about the expansion of the US fiscal deficit, further strengthening the "sell the United States" theme and exerting continuous pressure on the US dollar.
Affected by geopolitics, Israel is preparing to attack Iran's nuclear facilities, and the risk of the situation has escalated again. Gold has continued to rise with its own safe-haven properties. It has risen by more than 200 US dollars since the bottom rebound, which reflects the tension of the situation and the strength of gold's rise from the side!
In the past few days, I have been emphasizing that everyone should remain bullish. If you can go long, don't go short. Today is still the same idea. The continuous rise in the market focuses on the low point of the staged rise, and this round of small-level rises is at the 3290 line. In other words, the 3290 line has not been broken, and any decline in the bottom pattern is an opportunity for us to buy!
Gold strategy:
Buy range: 3325-3323, SL: 3310, TP: 3345-3355
Sell range: 3353-3355, SL: 3365, TP: 3335-3325
Key points:
First support level: 3310, second support level: 3300, third support level: 3290
First resistance level: 3345, second resistance level: 3350, third resistance level: 3355
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The US dollar index fell to a two-week low, making gold denominated in US dollars cheaper for investors holding other currencies. Market sentiment turned cautious, driving safe-haven funds into gold. Previously, Moody's downgraded the US sovereign credit rating, and President Trump's promotion of a massive tax cut bill is expected to be passed by Congress, which has triggered market concerns about the expansion of the US fiscal deficit, further strengthening the "sell the United States" theme and exerting continuous pressure on the US dollar.
Affected by geopolitics, Israel is preparing to attack Iran's nuclear facilities, and the risk of the situation has escalated again. Gold has continued to rise with its own safe-haven properties. It has risen by more than 200 US dollars since the bottom rebound, which reflects the tension of the situation and the strength of gold's rise from the side!
In the past few days, I have been emphasizing that everyone should remain bullish. If you can go long, don't go short. Today is still the same idea. The continuous rise in the market focuses on the low point of the staged rise, and this round of small-level rises is at the 3290 line. In other words, the 3290 line has not been broken, and any decline in the bottom pattern is an opportunity for us to buy!
Gold strategy:
Buy range: 3325-3323, SL: 3310, TP: 3345-3355
Sell range: 3353-3355, SL: 3365, TP: 3335-3325
Key points:
First support level: 3310, second support level: 3300, third support level: 3290
First resistance level: 3345, second resistance level: 3350, third resistance level: 3355
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Note
News: The May PMI data of European and American countries, the change in the number of initial jobless claims in the United States, and the annualized total number of existing home sales in the United States in April will be released on this trading day. Investors need to pay attention to them. In addition, continue to pay attention to the international trade situation, geopolitical situation and G7 meeting related news, and pay attention to the speeches of Federal Reserve officials.Technical aspect: If the European gold price successfully breaks through the short-term resistance level of 3345, a new upward channel will be formed; however, investors should also be wary of the risk of short-term market adjustments. Gold has risen sharply recently, and there may be a need for a technical correction. In addition, if the US economic data is unexpectedly strong or there are signs of easing in geopolitics, it may temporarily suppress the rise in gold prices. At present, gold has fallen all the way from the high of 3345 to around 3306. The short-term important pressure position is around 3322 in the morning; if it breaks through, it will look at around 3332-3345; the key support position below is the support band of 3280; if it breaks, it will look at the 3265-3250 line! Comprehensive analysis: It is expected to be in the range of 3322-3250 in the evening. Personally, I suggest to focus on high altitude! GOLD watershed: $3322
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.