Gold: focus on 1960 support

Fundamental Analysis.

On Friday (May 19) Fed Chairman Jerome Powell said that interest rates may not have to rise as high due to the tightening credit environment following the banking sector turmoil, the news was interpreted as a signal that the Fed may pause on rate hikes in June, and market expectations for a June rate hike fell from nearly 50% to 20%, with spot gold rebounding late in the day to close up 1.11%. Looking ahead, this week will focus on the FOMC May meeting minutes, the latest US GDP data and the PCE inflation indicator.

Spot gold XAUUSD four-hour chart

Technical analysis.

4 hours chart, gold low V-shaped reversal, MACD volume began to shrink under the zero axis, the short term out of a strong rebound, support concerns near 1960, above this level to see further rebound 2000-2020 near.

Resistance level:2000 2020

Support level:1960 1952

Trading strategy: 1960 above bullish, target 1990 2000   

Alternative strategy: 1960 bearish below, target 1940 1920