The price of gold has dropped significantly

The price of gold has dropped significantly

Spot gold has fallen since Monday, as U.S. Treasury yields have risen, and many countries plan to relax the epidemic-related blockade measures to promote investor interest in higher-risk assets, but the government ’s unprecedented stimulus measures still provide potential support for gold. At the same time, the largest oil ETF sold all WTI contracts held in June. WTI futures fell by 30% at a time. The drop in oil prices led to a drop in commodity prices and also brought pressure to gold to a certain extent. During the day, gold fell below the 1700 mark and slipped towards the 1690 line.

Technical Analysis: Gold

Yesterday, gold has shown a clear downward trend and has now fallen to a position not far below 1700. On the 1-hour chart, it is obvious that the downward trend can be seen. There is no rising kinetic energy signal in the intraday period. The Bollinger Bands have a wider opening and the price continues to break down the lower trajectory.

MACD is currently showing a downward trend. To determine whether to start the uptrend again, the reliable signal should rely on the DIF to cross the zero axis. Under the current circumstances, prices will obviously be in an overall downward trend for a longer period of time.

Day trade strategy: Overall bearish, pay attention to 1700 key integer bits, pay attention to the signal of DIF crossing the zero axis.

Resistance: 1710 1715 1720
Support: 1690 1680 1670

Z.com Bullion Analyst: Tony Liu