Gold: Support 2020 valid

Fundamental Analysis.

Wednesday (May 10) because the overall CPI slowdown in April slightly more than expected, gold short sharp pull once approaching $ 2050, but because the core CPI remains stubborn, the market optimism that the Fed will cut interest rates this year has receded, gold then retracted all the gains due to CPI data, and finally closed down 0.2%. Looking ahead to the market, the overall cooling of U.S. inflation, reinforcing the Fed's suspension of interest rate hikes plus pace, the general environment is still conducive to gold continue to rise.

Spot gold XAUUSD four-hour chart

Technical analysis.

4 hours chart, gold maintained above 2020 higher, while the MACD in the zero axis even release, the trend is still expected to continue to rise, the day above 2020 bullish, target 2050-2070 near.

Resistance level:2040 2060

Support level: 2013 2000

Trading strategy: 2020 bullish above, target 2050 2070   

Alternative strategy: 2020 bearish below, target 2000 1980