Gold short trend unchanged

According to the market trend of gold last week, although the rebound at the end of the week hit the 2370 mark, it then fell sharply to 2317, with a drop of more than 50 points in one day, erasing the gains during the week. At the beginning of this week, the price of gold rebounded to 2335 for repair, but it fell back the next day. The European session successfully held 2337, while the US session fell back to 2315. Comprehensive analysis shows that gold is still in a downward trend. The MA5 and MA10 moving averages of the weekly line formed a high-level dead cross, and the continuous shooting star lines of the monthly line also indicated that there is pressure.

For the operation strategy, maintain a bearish stance and recommend shorting in the 2318-2320 range. Focus on the support of 2306-2308 and the defensive position of 2300 below. Every rebound of gold is temporary, not a trend reversal. The current resistance has moved down to around 2325. If it is below this level in the early trading, you can short on rallies. You can start shorting from 2320 in the European session. Today's short-term operation recommendation is to focus on short selling and supplemented by long selling. In the short term, pay attention to the resistance range of 2322-2325 on the upper side and the support range of 2295-2286 on the lower side.

Comment:

On Wednesday, June 26, the spot gold price in the European session fell short-term, once falling to around 2304, refreshing the intraday low. The downward trend of gold prices seems to be trying to restore the corrective bearish trend expected in the day, and the next target is aimed at 2272.06. In the current market environment, for gold, the trading between the support level of 2295 and the resistance level of 2335 will be the focus of market attention in the short term.

Fundamentally, since most Fed officials continue to take a hawkish stance and say there is no urgency to cut interest rates, they should not overreact to the optimistic data of one or two months; it still takes a few more months or quarters to have confidence, and this week it still said that cutting interest rates or keeping interest rates unchanged for a longer period of time depends on inflation data. The weakening of the positive momentum of the interest rate cut bet brought about by the cooling of inflation collectively shown by the previous inflation data has made its overall trend continue to be weak and under pressure. In addition, yesterday, Fed Governor Bowman also said that there will be no interest rate cut in 2024, and the time for interest rate cut will be postponed to 2025. If the inflation decline stagnates, the market is still willing to raise interest rates, showing a hawkish view. Therefore, the current situation is still expected to fluctuate or fall back. A steady bullish rise still needs to wait until the fourth quarter to be deployed again. This week, the focus will be on the US first quarter gross domestic product (GDP) data on Thursday and the personal consumption expenditure (PCE) price index report on Friday.

Comment:

The one-hour moving average of gold shows a continuous downward dead cross, indicating that the short trend is obvious and strong. The gold price rebounded weakly and continued to hit new lows, indicating a strong downward momentum. Especially during the US trading session, whenever the gold price rebounds to around $2,318, you should consider shorting on rallies. In addition, when the price approaches $2,315, it is also a good opportunity to continue short trading.

The market is always right. Instead of trying to change the market with personal will, it is better to look for turning points in the market to grasp the trend. Especially after the sharp drop in gold prices last Friday, we adjusted to a short strategy in time. Insisting on shorting when the price rebounds will help us take advantage of the continued short trend to realize profits.

Comment:

Gold Trading Strategies Reference

🎯Strategy 1: Go short when gold rebounds to around 2304-2307, stop loss 6 points, target around 2290-2285, break the position and look at the 2277 line✅

🎯Strategy 2: Go long when gold pulls back to around 2277-2280 , stop loss by 6 points, target around 2290-2295, and look at the 2300 line if the position is broken✅

The trend of the gold market is changing rapidly, and trading strategies may also be adjusted in real time. Investors are advised to place orders cautiously and manage account funds and positions reasonably.