Gold price correction

Opening price 1803.71 Yesterday closing price 1803.55 Lowest price 1796.05 Highest price 1804.52

Gold price correction

The risk of the spread of the epidemic on Thursday made the US dollar stronger, which squeezed the buying demand for gold. Gold fell slightly from the high of nearly 9 years, and once fell below the $1800 mark. However, analysts generally believe that there are no negative factors in the fundamentals of gold. Although hedging funds tend to favor the US dollar in the face of recent epidemic risks, this is mainly due to the deflationary expectations caused by the epidemic that has made the US dollar sought after, but the dollar outlook is facing Four bad times. At the same time, from the perspective of seasonal factors, gold also tends to usher in the peak investment season from July to August, which will push gold further higher.

Technical Analysis: Gold

The price of gold has entered a repeated market. The price yesterday dropped sharply, falling to the lowest position at 1795, falling below the integer of 1800, and then rebounding slightly. It opened at 1803.71 in early trading today and recovered 1800, currently at 1801. Into the repeated decline and callback market.

On the 1-hour chart, the price is in an upward trend and is still below the Bollinger Band track. It has not touched the middle rail line, and the candlestick is generally observed to be in a rising market. This position can be considered long positions, take profit at the middle and upper trajectory. The upward trend has not yet driven the MACD linkage, indicating that it is still in the seller’s market.

Day trade strategy: long positions above 1800, and short positions below 1795 after the callback is initiated.

Resistance: 1810 1815 1820
Support: 1800 1790 1780

Important information:

20:30 US PPI annual rate in June (%)

Z.com Bullion Technical Analyst: Tony Liu