The U.S. index and U.S. debt both strengthened, gold fell again

A brief analysis of the fundamentals:

On Tuesday (May 31), U.S. Treasury yields and the U.S. dollar both strengthened again, and gold prices fell under pressure, and this month is likely to record a two-month decline for the first time since March 2021. U.S. President Biden met with Powell overnight, raising expectations that the Federal Reserve may adopt a more aggressive monetary tightening strategy amid inflationary pressures. Higher U.S. Treasury yields made zero-yielding gold less attractive, while a stronger dollar made dollar-denominated gold more expensive for overseas buyers, both weighing on gold.

Spot Gold XAU 4-hour chart

A brief technical analysis:

From the 4-hour chart, spot gold is obviously blocked at $1,867. This position is the 39.2% position of the previous wave of 1998-1787 decline in the golden ratio, which is a weak defensive position for shorts. The fall in gold prices here shows that the rebound of bulls is not strong. , the market outlook is likely to continue to fluctuate and decline. 

Long-short turning point: 1867

Resistance: 1845.00 1860.00

Support: 1825.00 1807.00

Trading strategy: bullish above 1867.00, target 1878.00 1890.00

Alternative strategy: bearish below 1867.00, target 1825.00 1807.00