Spot gold trading strategy on May 27: 200-day moving average support is strong, bulls are ready to move

During the Asia-Europe session on Friday (May 27), spot gold fluctuated and rose slightly. It is currently trading around $1,854 per ounce. The US economic data is deteriorating, the market's expectations for the Fed's monetary policy next year have eased, and the dollar continues to rise. Weak, helping gold prices stay above the 200-day moving average, and the geopolitical situation is still tense, which also provides confidence to the bulls. However, Asian stock markets generally followed the overnight gains in U.S. stocks, and gold's gains were also somewhat limited.

Investors are generally concerned about the US April PCE series data released in the evening. The market expects that the year-on-year increase in the core PCE index may drop from the previous 5.2% to 4.9% or slightly lower, which is expected to provide gold prices with an opportunity to rise.

Daily level: shock; although the price of gold was previously blocked near the multiple resistances near the middle rail of the Bollinger Bands, the current 200-day moving average also provides support for the price of gold. Trend, the current Bollinger Band resistance is near the 1860 mark, and further resistance refers to the 38.2% retracement of the 1998-1780 decline near 1867.56. If this resistance is broken, it is expected to further test the resistance near the 100-day moving average at 1888.55.

The support of the 200-day moving average below is currently near 1840.7. If it falls below this support, it will increase the short-term bearish signal; further support is near the low of 1832.23 on May 20, and the high point on May 18 is near 1824.63.



Resistance: 1860.74; 1867.56; 1880.00; 1888.55;
Support: 1840.70; 1832.23; 1824.63; 1810.82;

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