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Market News Gold market analysis: U.S. inflation data on stage, gold continues to wait sideways
Gold market analysis: U.S. inflation data on stage, gold continues to wait sideways
Gold's short-term resistance is at $1,849 an ounce, and then at $1,851 a troy ounce, the confluence of the above-mentioned moving averages. These levels will challenge the rebound in gold prices.
2022-06-10
8437
On Thursday (June 9), the price of gold fell slightly in volatile trading. In late U.S. markets, spot gold closed at $1,847.91 per ounce, down $5.11 or 0.28%. ounce. The market is awaiting the release of U.S. inflation data, which may provide guidance on the Fed's rate hike schedule.
Precious metals are still struggling and are expected to be flat ahead of the release of U.S. inflation. Gold futures ended lower on Thursday ahead of a U.S. consumer price index (CPI) report for May, which is expected to strengthen the case for the Federal Reserve to raise interest rates sharply, keep the dollar strong and keep U.S. bond yields high. The appreciation of the U.S. dollar and the rise in U.S. bond yields, especially the 10-year treasury bond rally above 3%, are the main reasons for the pressure on gold and other precious metals. A strong dollar is weighing on gold prices as traders grow increasingly concerned about stubbornly high global inflation and slowing economic growth, even as central banks are pulling back from easy monetary policy. The European Central Bank (ECB) announced on Thursday that it plans to raise interest rates for the first time in more than a decade in July. The European Central Bank will continue to raise interest rates after the start of interest rate hikes in July, which will open up market risk appetite and spread to the gold market. As for the U.S. CPI in May, U.S. Treasury Secretary Janet Yellen recently expected inflation to remain high. The White House once again gave an advance shot at inflation data on Thursday. The White House’s new press secretary revealed on Thursday that the White House expects inflation to rise, and the Russian-Ukrainian war is expected. There will be some impact on core CPI. There is a view that if the data surprises the market, gold investors will face the risk of a sharp rise in Treasury yields. However, judging from the general market expectations, most tend to expect that U.S. inflation has peaked. If this is the case, the Fed's monetary policy will remain on autopilot, and the price of gold may rise to a certain extent.
From the hourly chart, gold continues to trade below the two-day resistance line, also below the 200-period moving average and the 50-period moving average at $1,851 an ounce, and the relative strength indicator (RSI) is stable, which makes gold bears hold hope. Gold prices are currently under short-term support around $1,843 an ounce, and a break below that would push gold prices to monthly lows around $1,828 an ounce. After this, $1,810/oz and $1,800/oz could form the last line of defense for gold bulls. On the upside, short-term resistance for gold is at $1,849 an ounce, followed by the confluence of the above-mentioned moving averages at $1,851 an ounce. These levels will challenge the rebound in gold prices.
Personal views only, do not represent the views of the organization
Bank of China Guangdong Branch Wang Gang Source: Bank of China official website
Precious metals are still struggling and are expected to be flat ahead of the release of U.S. inflation. Gold futures ended lower on Thursday ahead of a U.S. consumer price index (CPI) report for May, which is expected to strengthen the case for the Federal Reserve to raise interest rates sharply, keep the dollar strong and keep U.S. bond yields high. The appreciation of the U.S. dollar and the rise in U.S. bond yields, especially the 10-year treasury bond rally above 3%, are the main reasons for the pressure on gold and other precious metals. A strong dollar is weighing on gold prices as traders grow increasingly concerned about stubbornly high global inflation and slowing economic growth, even as central banks are pulling back from easy monetary policy. The European Central Bank (ECB) announced on Thursday that it plans to raise interest rates for the first time in more than a decade in July. The European Central Bank will continue to raise interest rates after the start of interest rate hikes in July, which will open up market risk appetite and spread to the gold market. As for the U.S. CPI in May, U.S. Treasury Secretary Janet Yellen recently expected inflation to remain high. The White House once again gave an advance shot at inflation data on Thursday. The White House’s new press secretary revealed on Thursday that the White House expects inflation to rise, and the Russian-Ukrainian war is expected. There will be some impact on core CPI. There is a view that if the data surprises the market, gold investors will face the risk of a sharp rise in Treasury yields. However, judging from the general market expectations, most tend to expect that U.S. inflation has peaked. If this is the case, the Fed's monetary policy will remain on autopilot, and the price of gold may rise to a certain extent.
From the hourly chart, gold continues to trade below the two-day resistance line, also below the 200-period moving average and the 50-period moving average at $1,851 an ounce, and the relative strength indicator (RSI) is stable, which makes gold bears hold hope. Gold prices are currently under short-term support around $1,843 an ounce, and a break below that would push gold prices to monthly lows around $1,828 an ounce. After this, $1,810/oz and $1,800/oz could form the last line of defense for gold bulls. On the upside, short-term resistance for gold is at $1,849 an ounce, followed by the confluence of the above-mentioned moving averages at $1,851 an ounce. These levels will challenge the rebound in gold prices.
Personal views only, do not represent the views of the organization
Bank of China Guangdong Branch Wang Gang Source: Bank of China official website
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