GOLD: Gold or Extended Oscillatory Game Pattern

This week, gold or extended oscillatory game pattern, short-term mixed short and long factors, need to pay attention to the following key points:

1. Drivers

Favourable downside: the U.S. trade war eases and the Fed postponed interest rate cuts are still expected, the dollar index if the 101 mark, will suppress the space of the gold price rebound; the technical surface of the 3250 U.S. dollars near the existence of a strong resistance, if you can not break through may trigger profit-taking.

Favourable to rise: geopolitical risks (the situation in the Middle East, Russia-Ukraine peace talks stalemate) and weak U.S. economic data (retail sales, PPI fall) or stimulate safe-haven demand rebound; global central bank gold purchases (244 tonnes of additional holdings in the first quarter) to provide long-term support.

2. Technical key levels

Support: $3150-3180 (April low range), below or down to $3100;

Resistance: $3230-3250 (5-day SMA and previous highs), breakout is expected to challenge $3280.

3. Data and event risk

-Fed policy signals: pay attention to the minutes of the May meeting and official speeches, if the release of rate cuts delayed signal, gold prices under pressure;

U.S. CPI and PMI data: if inflation exceeded the expected rebound, or to strengthen the dollar suppression force!

$S&P 500(.SPX)$

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