Gold fell sharply from a high of over seven years

Opening price 1729.48 Yesterday closing price 1732.05 Lowest price 1729.31 Highest price 1735.75

Gold fell sharply from a high of over seven years

Reported by the optimistic prospects of vaccine research and development on May 18, European and American stock markets rose sharply, the Dow rose more than 900 points, the US dollar and other safe-haven assets fell together, the euro recorded the largest increase in nearly six weeks, and commodity currencies rose the most. Spot gold fell from a high of more than seven years to over US $ 30, and it once renewed its intraday high since October 2012 to 1765.43. Oil prices rose to a two-month high, and U.S. oil’s June contract rose more than 10% to a new high since March 16 to US $ 33.32 per barrel. Oil-producing countries are reducing production as planned due to market optimism about economic activity.

Technical Analysis: Gold

Gold rose to a seven-year high of 1765 yesterday and then dashed higher and then fell back to the 1725 position after a continuous decline. Today opened at 1729.48 and is currently moving up in a narrow range at 1735. The price is currently in the consolidation phase, and no market signal appears.

On the 1-hour chart, the price climbed slowly and narrowly after reaching the lower trajectory of the Bollinger Bands, and it is in a callback trend. It is more likely to maintain a volatile upward trend during the day. MACD still shows a more obvious decline. Due to the fierce downward trend at night, MACD needs enough kinetic energy to pull back. Pay attention to the position of DIF line and zero axis during the day.

Day trade strategy: light long position, pay attention to the callback again.

Resistance: 1735 1740 1750

Support: 1720 1710 1700

Important information of the day:

2200: Federal Reserve Chairman Powell and US Treasury Secretary Mnuchin will attend the Senate Finance Committee hearing through video to inform Congress of economic measures to deal with the new crown epidemic.

Z.com Bullion Analyst: Tony Liu