Market review:
Gold prices fell as much as $15 after hitting the $2,322 mark after opening on Monday, with major geopolitical tensions cooling and prices ending a five-week winning streak, with the reversal of upside resistance making it easy for broader gains to enter a monthly crossover with this week's FOMC interest rate decision and non-farm payrolls (NFP). Ahead of the May open, a battle line was drawn on gold's weekly technical chart.
Technical Analysis:
Gold prices retreated after a week of losses as the dollar began to stabilize and overseas buyers could not afford gold, while investors awaited further clues on when the Federal Reserve would make its first Jiangxi move, with the Federal Reserve meeting in the middle of the week where policymakers are expected to reiterate their stance of holding higher interest rates for longer, while gold posted its first weekly decline since mid-March.
Last month, the U.S. Personal Consumption Expenditures (PCE) price index rose 0.3% month-on-month, in line with expectations, a development that is unlikely to change expectations that the Fed will delay rate cuts until September.
Fed policymakers, after carefully studying the latest inflation data, will find nothing to stimulate a sense of urgency to cut rates, but nothing to rule out the possibility of rate cuts starting later this year.
Gold prices retreated after testing previously lost bullish channel support. Gold briefly put pressure on the $2,325.90 level, suggesting a return to the bearish correction. Gold needs to break below $2,325.90 to confirm that it will open the way for gold to fall to the next pullback target of $2,260.60.
Since the daily line has begun a sharp pullback, there are also signs of suspected double needle probe above, then the Bollinger band middle track has opened the situation, the next step is the 2300 mark break, as for the idea around the 2330 ~ 2350 range to build a short-term short position, first look at the 2300 mark, then look at the 2260 area support, waiting for the market to further dive, silver prices are also gradually pullback, around the 27.3 ~ 27.5 range to build a position to connect us with the 28 position together to see the bottom of 26.5 ~25.7 area support, after all, gold fell, the gap between gold and silver has narrowed, so that silver prices can also have a sharp pullback.
Today's focus is on
Germany's preliminary CPI for April, and the US Dallas Fed business activity index for April