Spot gold trading strategy on June 3: decisive battle against non-farm payrolls, bulls may have the upper hand

During the Asia-Europe session on Friday (June 3), spot gold fluctuated at a high level, currently trading around $1,868, holding on to most of the overnight gains. The poor performance of the US ADP data in May overnight made the US dollar weaken sharply, providing a certain upward momentum to the gold price. Although the performance of the initial application data was not bad, the US ISM manufacturing employment index fell below the 50 mark in May and was released in the evening. The non-agricultural data in May will likely be weaker than the performance in April, which is expected to provide further opportunities for gold prices to rise.

In addition, the geopolitical situation in Russia and Ukraine is still tense, which also provides support for gold prices; technically, short-term bullish signals have increased.

Daily level: shocks; moving averages are intertwined, but the MACD golden cross, KDJ re-formed a golden cross, the gold price broke through the middle rail resistance of Bollinger Bands, and is expected to further rise to the vicinity of 1895.64 on the Bollinger Line, and the resistance of the 55-day moving average is also Near this position, the 100-day moving average resistance is around 1890.37.

The support of the middle rail of the Bollinger Bands below is currently around 1851.49. If it falls below this position, it will weaken the short-term bullish signal; the strong support is around the 200-day moving average at 1842.20. If it falls below this support, it will increase the market outlook. In the short-term, there is also some support near the high point of 1863.82 on May 30, and the support near the 10-day moving average of 1855.08 can also be paid attention to.



Resistance: 1880.00; 1890.37; 1895.64;
Support: 1863.82; 1851.49; 1842.20;

Suggestions for short-term operations: conservatives wait and see; radicals do more cautiously on dips.