Gold: forming a new box

A brief analysis of the fundamentals:

On Wednesday (June 23), Federal Reserve Chairman Powell attended a Senate hearing and stated that he will be firmly committed to reducing inflation, and that inflation must be brought back to 2%, not ruling out any rate hikes, even including 100 basis points, but then Powell admitted that the United States There is a possibility of economic recession. Spot gold rose first and then fell. In late trading, it gave up some of the gains and finally closed at $1,836.49 per ounce. As the market's expectations for the Fed to raise interest rates gradually come to fruition, the problem of economic recession has begun to emerge, and risk assets such as crude oil and U.S. stocks have fallen, and the risk aversion of gold is expected to rise again.

Spot gold XAUUSD 1 hour chart

A brief technical analysis:

Looking at the 1-hour chart, the price of gold sees back and forth around 1835, and the short-term trend has once again entered a new consolidation range. It is difficult to confirm the direction before the box breaks through 1823-1848. It is advisable to abandon the middle point in operation and wait for the opportunity of the high and low points of the box or Enter the market after the breakthrough

Long-short turning point: 1835

Resistance: 1850.00 1865.00

Support level: 1820.00 1805.00

Trading strategy: bearish below 1835.00, target 1820.00 1805.00

Alternative strategy: bullish above 1835.00, target 1850.00 1865.00