Gold: Trend turns short

Fundamental Analysis.

Friday (June 2) the U.S. May new non-farm payrolls unexpectedly rose from 294,000 to 339,000, much higher than the expected 190,000, the market expects the Fed will need to take more measures to curb inflation, gold continued to sink, once fell nearly $ 20, giving back most of the week's gains, and finally closed down 1.33%. Looking ahead, with the U.S. Congress passing the debt ceiling deal and the strong performance of the latest non-farm payrolls report, gold prices face greater downside risk.

Spot gold XAUUSD four-hour chart

Brief technical analysis.

The 4-hour chart shows that gold was stopped below 1983 and fell back, the short decline accelerated, MACD volume began to shrink above the zero axis, the current resistance concern in 1963, under the level continue to look at 1935-1920 near.

Resistance level:1963 1983

Support level:1935 1920

Trading strategy: bullish above 1963, target 1983 2000

Alternative strategy: bearish below 1963, target 1935 1920