CPI data burst again, US index gold soared

A brief analysis of the fundamentals:

According to the latest inflation data released on Friday (June 10), the U.S. CPI increased by 8.6% year-on-year in May, reaching a new high. The probability is also greatly increased. Judging from the market's initial reaction, although the short-term interest rate hike is expected to increase, the long-term economic outlook has declined. The decline in US stocks and concerns about economic recession have supported the strength of gold prices, so the US index and gold have both pulled up. This Thursday will usher in the Fed's interest rate decision, and there are still large variables in the trend of gold.

Spot Gold XAU 4-hour chart

A brief technical analysis:

From the 4-hour chart, although spot gold broke through the previous high of 1870, the trend was in a horn shape, and the MACD column continued to shorten and deviate from the price, and the wide fluctuations were still obvious. The rise of the gold price needs further upward confirmation. The next resistance is at 1880, and the current support has moved up to 1860. In view of the pressure of trend deviation, it is necessary to guard against the price of gold rising and falling during the day.

Long-short turning point: 1860

Resistance: 1880.00 1895.00

Support level: 1860.00 1840.00

Trading strategy: bearish below 1860.00, target 1840.00 1836.00

Alternative strategy: bullish above 1860.00, target 1880.00 1895.00