Gold: under retracement pressure

Fundamental Analysis.

Thursday (May 12) data show that last week's U.S. initial jobless claims jumped, and April PPI data recorded the smallest year-on-year increase in more than two years, gold prices rose slightly, but with the Federal Reserve officials hawkish remarks led to a stronger dollar, gold retracted all the gains and finally closed down 0.76%. Looking ahead, the U.S. debt crisis is still pending, if further fermentation fears to trigger a rise in market risk aversion, when the gold price will form support.

Spot gold XAUUSD four-hour chart

Technical analysis.

4-hour chart, gold rushed back down below the 2020 mark, while the MACD volume column below the zero axis, short-term retracement pressure increased, the current 2020 support turned into resistance, the day under the level to see a retracement, look below 2000-1980 near.

Resistance level: 2020 2040

Support level:2000 1980

Trading strategy: 2020 below bearish, the target 2000 1980

Alternative strategy: 2020 bullish above, target 2040 2060