Lagarde pigeons gold under pressure, markets focus on CPI data

A brief analysis of the fundamentals:

On Thursday (June 9), spot gold fluctuated downwards. It dropped to US$1,840 at one point in the session, and finally closed down 0.28% at US$1,848.04 per ounce. The European Central Bank announced that the three key interest rates will remain unchanged, and it is expected to raise interest rates once in July and September. However, the European Central Bank President Lagarde's speech was not as tough as the market expected and was regarded as dovish, causing the euro to rise and fall. , the US dollar index fell first and then rose, and the intraday violence rose and broke through the 103 mark. During the day, we will focus on the May CPI data of the United States. If inflation is still at a high level, it will intensify the expectation of the Federal Reserve to raise interest rates continuously and sharply, which will once again suppress gold.

Spot Gold XAU 4-hour chart

A brief technical analysis:

From the 4-hour chart, spot gold is still oscillating back and forth around 1850. Before the box interval of 1836-1867 is broken, it is difficult to confirm the gold trend. If the top breaks through 1867, it is expected to look up around 1880-1890; if the bottom falls below 1836, then look down around 1820-1800

Long-short turning point: 1850

Resistance: 1858.00 1867.00

Support level: 1840.00 1836.00

Trading Strategy: Bearish below 1850.00, target 1840.00 1836.00

Alternative strategy: bullish above 1850.00, target 1858.00 1867.00