Gold price plummets: current pressure level is 3300-3310
News:
• Negative factors:
1: High-level economic and trade consultations between China and the United States were held in Geneva, Switzerland, and substantial progress was made. The two sides agreed to establish a Sino-US economic and trade consultation mechanism. The market expects that the tariff war will end soon, and the demand for risk aversion has cooled significantly, leading to a drop in gold prices.
2: The Federal Reserve's May resolution emphasized that "inflation still needs to be observed", and the probability of a rate cut in June fell to 65%. The US dollar index stabilized at 100.3, which suppressed the attractiveness of gold.
3: In addition, the comprehensive ceasefire between India and Pakistan, Trump's announcement of a ceasefire agreement with the Houthi armed forces, the cooling of geopolitical risks, and the recovery of market risk appetite are also unfavorable to gold.
Support factors:
1: Gold prices triggered short-term buying in the range of US$3260-3275, and there is a need for technical oversold repair.
2: The People's Bank of China has increased its gold holdings for 6 consecutive months. In the first quarter, global central banks net bought 244 tons of gold, and the long-term logic of de-dollarization has not changed.
3: The US GDP shrank by 0.3%, inflation was high (the expected CPI was 3.5%), and the risk of stagflation was looming. The anti-inflation property of gold was favored by institutional funds.
Technical analysis:
Gold opened lower and fell today, and once fell by 50 points. The decline narrowed after the opening of the Asian session, but the technical short trend of gold remained strong. The gold price fell below the support level and is expected to fall back. Today's operation considers rebound shorting as the main, and low-level longs as the auxiliary, and pay attention to the resistance of 3310-3330 US dollars above.
Shorting suggestion: shorting near 3290-3288 above, stop loss 3300-3310, take profit 3270-3265-3250-3225;
News:
• Negative factors:
1: High-level economic and trade consultations between China and the United States were held in Geneva, Switzerland, and substantial progress was made. The two sides agreed to establish a Sino-US economic and trade consultation mechanism. The market expects that the tariff war will end soon, and the demand for risk aversion has cooled significantly, leading to a drop in gold prices.
2: The Federal Reserve's May resolution emphasized that "inflation still needs to be observed", and the probability of a rate cut in June fell to 65%. The US dollar index stabilized at 100.3, which suppressed the attractiveness of gold.
3: In addition, the comprehensive ceasefire between India and Pakistan, Trump's announcement of a ceasefire agreement with the Houthi armed forces, the cooling of geopolitical risks, and the recovery of market risk appetite are also unfavorable to gold.
Support factors:
1: Gold prices triggered short-term buying in the range of US$3260-3275, and there is a need for technical oversold repair.
2: The People's Bank of China has increased its gold holdings for 6 consecutive months. In the first quarter, global central banks net bought 244 tons of gold, and the long-term logic of de-dollarization has not changed.
3: The US GDP shrank by 0.3%, inflation was high (the expected CPI was 3.5%), and the risk of stagflation was looming. The anti-inflation property of gold was favored by institutional funds.
Technical analysis:
Gold opened lower and fell today, and once fell by 50 points. The decline narrowed after the opening of the Asian session, but the technical short trend of gold remained strong. The gold price fell below the support level and is expected to fall back. Today's operation considers rebound shorting as the main, and low-level longs as the auxiliary, and pay attention to the resistance of 3310-3330 US dollars above.
Shorting suggestion: shorting near 3290-3288 above, stop loss 3300-3310, take profit 3270-3265-3250-3225;
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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.
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.