Inflation expectations are gradually cooling down, gold prices bottom and wait for a rebound

A brief analysis of the fundamentals:

On Thursday (May 26), the minutes of the Fed meeting confirmed that it will continue to raise interest rates significantly. However, the US dollar index also fell again after a lapse of one trading day, and spot gold recovered slightly, closing at $1850.22 per ounce. Although judging from the U.S. CPI data in April, there is almost no sign that inflation is about to peak, but market-based inflation expectations have cooled significantly in May, which has given the market confidence in Powell’s fight against inflation. Multiple factors have disturbed The probability of a slight rebound in gold prices is high.

Spot Gold XAU 4-hour chart

A brief technical analysis:

From the 4-hour chart, the price of gold continues to fluctuate in a range, 1840 has become a watershed between long and short, the MACD red column is shortened, the RSI indicator is flat, and the probability of continuous fluctuations within the day is high.

Long and short turning point: 1840.00

Resistance: 1865.00 1890.00

Support level: 1815.00 1800.00

Trading strategy: bullish above 1840.00, target 1865.00 1890.00

Alternative strategy: bearish below 1840.00, target 1815.00 1800.00