Spot gold fell sharply overnight, hitting an intraday high of $2,364.48 and a low of $2,332.09 before finally closing at $2,336.00. In today's European session, gold rose slightly and is currently hovering near $2,345.
The big market is about to start!
Overnight, U.S. stocks were mixed, and the Dow ended its eight-day winning streak. At the close, the Dow fell 81.33 points, or 0.21%, to 39,431.51, the Nasdaq rose 47.37 points, or 0.29%, to 16,388.24, and the S&P 500 fell 1.26 points, or 0.02%, to 5,221.42.
Today, investors will focus on two things.
The first is the US PPI data for April.
At 20:30 Beijing time, the United States will release April PPI data, and authoritative media surveys show that the US PPI in April is expected to increase by 0.3% month-on-month and 2.2% annually. The survey also showed that the core PPI in the United States is expected to increase by 0.2% month-on-month in April, and the annual rate is expected to climb by 2.4%.
The data will trigger the first major reaction of the week, and if there is a counter-intuitive move in the market by then, then it is likely that the CPI data has leaked.
The second is that Powell spoke.
At 22:00 Beijing time, Fed Chairman Powell delivered a speech, and it is expected that the content of his speech is inseparable from inflation. You know, Fed Chairman Jerome Powell sent a dovish signal at the press conference after the May meeting, saying that the next move of the FOMC is unlikely to be a rate hike.
Interest rate futures traders betting on the Fed's first rate cuts in September and November are almost "evenly matched," according to the CME's FedWatch tool. The Fed Watch tool is enough to see that traders' expectations for a rate cut are basically hovering around 25 basis points - 50 basis points, rather than the 150 basis points that were widely bet at the beginning of the year.
At present, U.S. stocks are struggling to move forward under the attack of long and short, on the one hand, it is to usher in the so-called historical period of selling in May and then leaving, Wall Street is collectively bearish on small-cap stocks, believing that small-cap stocks will become the most dangerous stocks in the market, and the corresponding latest MLIV survey, large technology stocks will become a tool to hedge against inflation.
Speaking of perfect stocks, let's take a look at the performance of A-shares today?
Today, the A-share market fluctuated in a narrow range throughout the day, with the three major indexes all falling slightly. At the close, the Shanghai Composite Index fell 0.07%, the Shenzhen Component Index fell 0.05%, and the ChiNext Index fell 0.26%.
Overall, stocks rose more and fell less, and more than 3,400 stocks rose in the whole market. The turnover of the Shanghai and Shenzhen stock markets today was 824.6 billion, a decrease of 85.2 billion from the previous trading day.
In terms of sectors, civil explosives, games, automobiles, household light industry and other sectors were among the top gainers, while cell immunotherapy, coal, synthetic biology, glyphosate and other sectors were among the top decliners.
Especially in the game sector, nearly 10 shares such as Zhongke Cloud Network, Caesar Culture, Dasheng Culture, Hongbo Shares, and Tom Cat rose by more than 10%.
Analysts pointed out that the rise of game stocks was mainly stimulated by two aspects, one was the overnight surge in the U.S. stock game station, and the other was the opportunity for the game industry to go overseas, in March, the actual sales revenue of China's self-developed games in overseas markets was 1.427 billion US dollars, up 5.98% month-on-month and 11.34% year-on-year.
In addition to this, investors need to pay attention to the news on the international situation.
The EU will do it against Russia!
On May 13, local time, the European Union is preparing the 14th round of sanctions against Russia, which will involve Russian natural gas this time, and plans to prohibit Russian liquefied natural gas from transiting through EU ports.
This will mark the first time that the EU has imposed restrictions on Russian LNG exports.
Some institutions believe that once the EU imposes sanctions, it will have a profound impact on the export model of Russian LNG. Russia will have to overhaul its LNG export strategy, and natural gas and LNG prices could soar.
In addition to the European Union, the United States has also taken action against Russia.
On May 13, local time, the White House announced that U.S. President Joe Biden officially signed a bipartisan bill banning the import of unirradiated low-enriched uranium produced in Russia. This is the main fuel used in nuclear power plants, and the import ban will come into effect after 90 days.
It is noteworthy that on the eve of Biden's signing of the bill, the United States imported a large amount of uranium from Russia. It is reported that from January to November 2023, Russia sold a total of $1.017 billion worth of uranium fuel to the United States, the highest value since 2010.
The market expects that the import ban signed by Biden may further stimulate the price of related products to continue to rise.
In addition, investors need to pay attention to the situation in the Middle East. According to a report by CNN on May 13 local time, two senior U.S. government officials told the media that according to the Biden administration's assessment, Israel has gathered enough troops near the southern city of Rafah in the Gaza Strip to launch a full-scale attack on Rafah in the next few days.
Jintou.com: 5.14 gold trend analysis
Gold traders have clearly been keen to catch any downtrend in the market so far this year. Given the strong trajectory of precious metals, their reasons for adopting this approach are understandable. The current weakness in the market may provide another opportunity for traders to buy the dip.
Image source: Jintou.com
From a technical point of view, spot gold briefly touched the 50-period exponential moving average (EMA), and after the start of today's trading, gold prices began to rebound, thus reinforcing expectations that gold prices will resume the main bullish trend. Stochastic is clearly sending a positive signal for now, waiting for this factor to push gold to hit the first bullish target at $2,400.00, with higher targeting at the recent all-time high of $2,431.44.
Analysts expect gold to trade between support at $2,325.00 and resistance at $2,365.00 today, and the expected trend for gold prices today is bullish.