TradingKey-Rating AgencyMoody'sAfter downgrading the U.S. sovereign credit rating last week, the long-term credit ratings of several major U.S. banks were downgraded again.JPMorgan Chase, Bank of America,Wells FargoThe long-term deposit ratings of top Wall Street banks were downgraded from the original Aa1 to Aa2. Risk aversion in the market has heated up, and safe-haven demand for gold has risen. China's physical gold imports increased. China's total gold imports reached 127.5 tons last month, a new high in 11 months. After yesterday's sharp rise, the price of gold continued to climb in Asian trading today and broke through the $3,300 mark. The market outlook may continue to explore and march towards $3,500.
Last Friday, Moody's announced that it would downgrade the sovereign rating of the United States from the highest level AAA to Aa1, becoming the last major rating agency to cancel the highest credit rating of the United States, which became the fuse of panic in the financial market. Last night, Moody's once again downgraded the long-term credit ratings of a number of major U.S. banks, lowering the long-term deposit ratings of top Wall Street banks such as JPMorgan Chase, Bank of America, and Wells Fargo from the original Aa1 to Aa2. Moody's pointed out that the reason for downgrading the ratings of major U.S. banks is the continuous expansion of U.S. debt, which has now reached $36 trillion.
Chinese customs data released on Tuesday showed that China's total gold imports reached 127.5 tons last month, a new high in 11 months. Some institutions said that the central bank's move to allocate new import quotas to some commercial banks in April may be a key factor driving the surge in imports.
Goldman SachsPointed out that,China GoldImports (excluding central bank gold purchases) rebounded to a one-year high in April, most likely related to arbitrage activity triggered by the Shanghai Gold Exchange's pricing advantage over the London Bullion Market Association (LBMA). While gold prices are at a one-year high, it is worth noting that physical gold demand remains strong.
Investors' expectations for the Federal Reserve to cut interest rates have fallen as Trump's tariff policies may spur higher inflation. New York Fed PresidentWilliams(John Williams) said that monetary policymakers may not be ready to lower interest rates before September in the face of an uncertain economic outlook. Atlanta Fed President Bostic said he would prefer only one interest rate cut this year in the current context of the Fed trying to balance upward pressure on inflation with the risk of a recession.
Technical analysis of gold price
Source: Mitrade Gold Price Action
Technically, after the price of gold fell sharply last week, the price of gold began to stop falling and rebound this week, and broke through the $3,300 mark. Each moving average began to show a bullish arrangement, indicating that the bullish forces in the market have an advantage. In the KD index, the two lines maintain an upward operation, and many investors take the initiative to attack. The price of gold may continue to rise in the market outlook, further testing to $3,500.
The initial resistance of gold's upward trend is at 3400, the further resistance level is at 3500, and the key resistance is at 3600; The initial support for gold's downward trend is located at 3200, further support is located at 3100, and the more critical support level is 3050.
Original text link
