Spot gold trading strategy on May 25: near the minutes of the Fed meeting, the bears want to make a comeback

On Wednesday (May 25), during the Asia-Europe session, spot gold weakened slightly and is currently trading around US$1,858. The minutes of the Fed meeting will be released. It is likely to strengthen the Fed's expectation of aggressive interest rate hikes in the future, which provides a rebound opportunity for the US dollar. U.S. stocks bottomed out and rebounded overnight, suggesting that the short-term downside of U.S. stocks is limited; the New Zealand Federal Reserve has a 50 basis point holiday as scheduled, increasing the opportunity cost of holding gold, which is also detrimental to gold prices. In addition, the price of gold broke through the strong resistance again overnight and failed, and the bears began to exert force.

Attention: The monthly rate of U.S. durable goods orders in April, the European Central Bank President's speech, the minutes of the Fed meeting, news related to geopolitical situations, news related to the new crown epidemic

Daily level: rebound after unilateral decline; MACD golden fork, KDJ golden fork, KDJ's J line sends a short-term overbought signal, gold price is in the middle of Bollinger Bands, the 38.2% retracement of the previous decline and other multiple resistances around 1868.74 Encountering resistance, watch out for the possibility of a resumption of the downtrend.

The initial support is near the 21-day moving average at 1854.53, the 100-day moving average is near 1840.00, and the 10-day moving average is near 1835.25. If this support is lost, it will increase the bearish signal in the market outlook.

If it unexpectedly breaks the resistance near the middle rail of the Bollinger Bands at 1868.74, the market outlook is expected to further test the resistance near the 100-day moving average at 1887.41.



4-hour level: volatile rise; but after the MACD top deviates, the high level is initially dead, KDJ is running, the price of gold has not been able to break through the strong resistance level, and the short-term downside risk has increased. Pay attention to the support near the middle Bollinger band at 1849.62 If this support is lost, the price of gold may fall further towards the lower Bollinger band around 1824.85.

If the price of gold can stick to above the middle rail of the Bollinger Bands, there is still a chance for the market outlook to fluctuate higher.



Resistance: 1868.87; 1880.00; 1887.441;
Support: 1854.00; 1840.00; 1835.55;

Suggestions for short-term operations: wait and see; radicals are cautious about short-term rallies.