Opening price 1725.49 Yesterday closing price 1726.98 Lowest price 1722.80 Highest price 1729.10
Weak economy and QE may boost gold prices again
The U.S. dollar rose against the G-10 currency across the board on May 21. Most of the US Treasury bonds were higher, as the escalation of international tensions pushed up the demand for risk aversion. The US stock market fell, and the number of people who filed for unemployment relief for the first time last week reached 2.44 million. The Bank of Japan will hold an emergency policy meeting today, which is expected to strengthen financial support for companies hit by the epidemic. In addition to the pressure caused by the discussion that the Bank of England will adopt negative interest rates, the pound has also been negatively affected by the Brexit negotiations, and the negotiation situation has deteriorated.
Technical Analysis: Gold
The price of gold fell sharply yesterday evening, dropping from 1740 integers to a minimum of 1716.83. It has since rebounded slightly. Today opened at 1725.49 in early trading and is currently at 1728.88, the overall situation is in a narrow upward trend.
Overall, prices have been sluggish after a sharp fall at night. However, the pullback kinetic energy afterwards showed relatively strong, which occupied more than 1725 positions sooner. The price is about to cross the Bollinger Band rail, and the rebound is obvious.
Pay attention to the competition of the candlesticks during the Asian session. If the price enters the 1730-40 stage during the European and American trading hours, you can judge that the new round of rising market has started.
Day trade strategy: light long positions and long positions above 1740.
Resistance: 1735 1740 1750
Support: 1725 1720 1710
1930: ECB announces minutes of monetary policy meeting
Z.com Bullion Analyst: Tony Liu