Opening price 1736.18 Yesterday closing price 1736.65 Lowest price 1725.10 Highest price 1740.00
Need to be alert to the retracement of high gold prices
On Thursday, spot gold once stood at the $1740 mark and continued to brush more than a week high. On Wednesday, US Treasury Secretary Mnuchin’s optimistic expectations for economic recovery caused gold to fall to US$1708.13, but as the Fed hinted that the epidemic may cause permanent damage to the economy, and promised to continue to purchase assets, it strengthened the market’s expectations of the Fed’s continued easing. As a result, the US dollar fell to a three-month low, pushing gold to a new high of more than a week. However, it is necessary to be alert to the hope that the economy is gradually liberalized to boost market risk appetite. Days continue to pay attention to the number of US unemployment benefits and the G7 meeting. Be wary of falling gold.
Technical Analysis: Gold
Affected by fundamentals yesterday, the price of gold has increased significantly, with the highest level hitting a high of 1740. Today opened at 1736.18 in early trading. After that, it generally showed a narrow downward trend. The European market showed an N-shaped rebound in the afternoon. It is currently at 1735.
On the 1-hour chart, the Bollinger Bands opened wide due to the influence of the evening rally. There is still no sign of retreat, and the price is currently supported and rising. The upward trend is still not lost.
The N-type reversal on the 1-hour chart has not yet been fully formed. To determine whether to complete a new round of gains, it is necessary to observe whether the price can continue to break through the Bollinger Bands track again, and the market is in line with 1740. Climbing the 1740 high again is the main sign.
Day trade strategy: The current situation can be lighter than long positions, parity with the 1740 position. If there is a callback in the market, it is necessary to continuously break through the Bollinger Middle Rail and pick up the head. If there is no obvious trend, trade according to the shock trend.
Resistance: 1740 1745 1750
Support: 1730 1720 1710
Important information of the day:
2030: Number of people claiming unemployment benefits at the beginning of the week as of June 6 (ten thousand)
Z.com Bullion Analyst: Tony Liu