On Monday (May 27, Beijing time), spot gold prices experienced last weekcandycrushsodasagakingAfter falling sharply, it showed signs of rebound, and the price of gold is currently above US$2340 per ounce. Analyst Dhwani Mehta pointed out that the rebound in gold prices was due to market light and geopolitical uncertainty caused by the U.S. holiday.
geopolitical tensions
The escalating conflict between Israel and Hamas has spurred safe-haven funds to flow into the gold market. Geopolitical uncertainty provides additional support for gold.
Technical analysis and future prediction
Daily chart analysis
Judging from the daily chart, gold prices face downside risks after falling below the rising wedge pattern. However, if the 14th Relative Strength Index (RSI) can close above 50, this may signal a recovery in gold prices. In addition, gold prices need to break through the key support level of US$2356/ounce to confirm further recovery trends.
Key resistance and support levels
Direct resistance: The 21-day simple moving average (SMA) of $2348 per ounce is an important resistance level. If gold prices can break through this level, it may further challenge the psychological barrier of US$2400 per ounce.
Support: The 50-day moving average of $2313 per ounce is a key support level. If gold prices fall below this level, it may further drop to US$2300/ounce, or even test the May 3 low of US$2277/ounce.
Liquidity considerations
As markets in the UK and the US are closed for the holidays, lack of market liquidity may amplify fluctuations in gold prices. Investors should take this into account when making trading decisions.
Federal Reserve policy expectations
Market expectations for the Federal Reserve to cut interest rates this year are declining, which could put pressure on a rebound in gold prices. The Fed's policy movements have a direct impact on gold prices, so investors need to pay close attention to the Fed's next move.
The future trend of the gold market is full of uncertainty, but through in-depth technical analysis and consideration of the macroeconomic environment,candycrushsodasagakingWe can draw some conclusions. In the short term, gold prices may be supported by geopolitical tensions. However, the long-term trend still needs to focus on the policy trends of the Federal Reserve and the recovery of the global economy.