Gold trading direction remains bullish
Gold prices fell under pressure, breaking through 3,300 points during the session and eventually closing at a low level. The lack of fundamental support and the rise in US assets eventually caused gold prices to fall back, and are still in a falling stage.
At the beginning of this week, we made it clear that we would not enter the market at a high level to chase the rise. Gold prices are facing important technical suppression. Falling back may be inevitable, but it is also normal. Only by falling back can we expand the space for rising prices. The upward trend will not be changed during the adjustment. Under this development background, the next trading path is clear.
At the beginning of the week, although the US dollar rebounded, it is still unknown whether it can continue!
After the 20-year US Treasury auction last week was cold, this week will usher in the 5-year and 7-year Treasury auctions. If it is cold again, the market will only increase its distrust of the entire US assets. If so, it will theoretically be good for gold prices.
On Thursday, the market will welcome the minutes of the Federal Reserve's May monetary policy meeting, followed by speeches by several Federal Reserve officials. What will be the final tone? It is difficult to make predictions and affirmations now, and the market needs to observe inflation from this meeting and speech most, so as to clarify expectations on whether the Federal Reserve will cut interest rates or not, which requires special attention.
5.29 Federal Reserve Meeting Minutes
Whether the gold price retreats or fluctuates, it will not change the upward trend. This is a point we have made clear many times, but it should be noted that it is different from last year.
This year's rise is unlikely to rise from the beginning of the year to the end of the year like last year. This year's rise must go through multiple cycles and large space back and forth, especially leveraged transactions. Positions must be controlled and risks must be strictly controlled. Those who are not leveraged only need to wait patiently and use time to exchange space.
Yesterday, the price of gold retreated as expected, falling below 3,300 points during the session. After reaching the effective support level, it rebounded, but the strength was not strong and the space was not large. The final price was not high. From today to now, there has not been a strong rebound, and even if there is, it is difficult to sustain.
As of today, Wednesday, the decline in gold prices has not yet ended completely. The support tested yesterday is expected to be tested again, or even broken. From a technical point of view, there is still a lot of room for expansion below, but the trend of gold prices is not completely determined by a single technical aspect. It must be combined with fundamental information to make a comprehensive judgment.
In short, the upward trend of gold prices has not changed. In the stage of retracement and adjustment, it is necessary to control the rhythm of long and short changes. If it can retrace and lower the price, there will be more room for the next rise.
