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Market News The international gold price continues to run in the range of 1830-1870 US dollars

The international gold price continues to run in the range of 1830-1870 US dollars

On Thursday (June 9), international gold prices were under pressure, subject to rising U.S. bond yields, reducing the attractiveness of non-yielding gold. Investors were cautious ahead of U.S. inflation data, which is expected to affect the Fed's path to rate hikes. Gold prices continue to run in the $1830-1870 range

2022-06-09
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On Thursday (June 9), international gold prices were under pressure, subject to rising U.S. bond yields, reducing the attractiveness of non-yielding gold. Investors were cautious ahead of U.S. inflation data, which is expected to affect the Fed's path to rate hikes. Gold prices continue to run in the $1830-1870 range.

At GMT+8 14:52, spot gold fell 0.17% to US$1850.01 per ounce; the main COMEX gold futures contract fell 0.24% to US$1852.1 per ounce; the US dollar index rose 0.02% to 102.579.

U.S. inflation data for May will be released on Friday (June 10). The market expects that the overall and core CPI of the United States are expected to rise by 8.3% and 5.9% year-on-year respectively in May. The prospect of aggressive rate hikes by the Fed is hard to shake.

Michael Langford, director of corporate consulting firm AirGuide, said: "The current market is full of uncertainty, and the price of gold has maintained a range-bound pattern in the short term. However, since April, the price of gold has been on a downward trend."

Langford added that the key issue for gold is rising interest rates. "There are few catalysts for gold to break out to the upside, and the overall downtrend is more likely to continue in the next few months, with gold prices falling to $1,800 an ounce."

Analysts at Credit Suisse report that gold is trading below its recent high of $1,874 and the 200-day moving average, allowing it to maintain a slight downside bias in a broader sideways range. A break below $1,787 would reinject fresh downside momentum and test the lower edge of the two-year trading range at $1,677. However, only a break below this area would confirm the formation of a major top.

From the daily chart, the price of gold may start a downward iii wave trend from $1,874, and the lower support looks at the 23.6% target of $1,824. Wave iii is a sub-wave of the descending (c) wave that started at $1998. Wave (c) belongs to wave ((c)) that started at $2070.


But gold prices may still be in the uptrend ii wave that started from $1786. Among them, the upward ((C)) wave started from $1836 is a sub-wave of the ii wave, and the upper resistance looks at the 38.2% target of the ((C)) wave at $1868.
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