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Gold: return will fall trend

Fundamental Analysis.

On Monday (May 22) debt ceiling negotiations resurfaced with optimistic signals, while Fed officials made hawkish remarks indicating support for further tightening in order to curb inflation, U.S. bond yields moved higher and spot gold retreated, eventually closing down 0.24%. Looking ahead, gold prices could still turn higher if the U.S. Congress fails to reach an agreement on raising the debt ceiling anytime soon.

Spot gold XAUUSD four-hour chart

Brief technical analysis.

The 4-hour chart shows that gold's rebound to the 1980 mark is once again blocked by a pullback, MACD volume under the zero axis re-discharge, the trend back to downtrend, resistance concerns near 1983, below this level bearish 1950-1930 near.

Resistance level:1983 2000

Support level:1950 1932

Trading strategy: 1983 bearish below, target 1950 1930
Alternative strategy: 1983 bullish above, target 2000 2020   

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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