Fundamental analysis
On Tuesday (29 June), the US dollar reached its largest one-day increase for the past two weeks. Market is worried that the new mutant virus may derail the global recovery. Spot gold price fell nearly 1% to close at around US$1761, the lowest level since mid-April. The rising US Treasury yields and the strengthening of the US dollar put pressure on gold prices. Some market strategies believe that in addition to the strengthening of the US dollars, some investors may expect employment data to be better than expected. If the employment data is better than expected, the Fed’s internal calls for interest rate hikes will be even louder, which will put pressure on gold prices. Spot gold fell sharply by 1.56% yesterday, hitting a new low since April 15, to $1750.79 per ounce. As the US dollar strengthened before the release of the US employment report this week, the report is expected to be relatively strong and may consolidate the Fed’s recent hawkish stance.
Technical analysis
From the daily chart, gold price fell below the support Fibo 61.8% level yesterday, and the price tested the lowest in the day around 1750. The Bollinger band turns down, MACD downward momentum continuously increase, RSI hovering near the oversold zone. The 4-hour Bollinger band are opened, be cautions that there may be a decline after shock today. In addition, MACD downward momentum continues, RSI operates below the 50 area. Today’s short order enters at 1768, stop loss 1780, take profit 1746
Today’s strategy
Strategy 1: short order 1768, stop loss 1780, take profit 1746
Strategy 2: long order 1746, stop loss 1740, take profit 1756
On Tuesday (29 June), the US dollar reached its largest one-day increase for the past two weeks. Market is worried that the new mutant virus may derail the global recovery. Spot gold price fell nearly 1% to close at around US$1761, the lowest level since mid-April. The rising US Treasury yields and the strengthening of the US dollar put pressure on gold prices. Some market strategies believe that in addition to the strengthening of the US dollars, some investors may expect employment data to be better than expected. If the employment data is better than expected, the Fed’s internal calls for interest rate hikes will be even louder, which will put pressure on gold prices. Spot gold fell sharply by 1.56% yesterday, hitting a new low since April 15, to $1750.79 per ounce. As the US dollar strengthened before the release of the US employment report this week, the report is expected to be relatively strong and may consolidate the Fed’s recent hawkish stance.
Technical analysis
From the daily chart, gold price fell below the support Fibo 61.8% level yesterday, and the price tested the lowest in the day around 1750. The Bollinger band turns down, MACD downward momentum continuously increase, RSI hovering near the oversold zone. The 4-hour Bollinger band are opened, be cautions that there may be a decline after shock today. In addition, MACD downward momentum continues, RSI operates below the 50 area. Today’s short order enters at 1768, stop loss 1780, take profit 1746
Today’s strategy
Strategy 1: short order 1768, stop loss 1780, take profit 1746
Strategy 2: long order 1746, stop loss 1740, take profit 1756