Spot gold trimmed in a narrow range before CPI inflation data

A brief analysis of the fundamentals:

On Wednesday (June 8), gold settled in a narrow range around the 1850 level. The market lacked the stimulation of risk events, and the volatility of gold prices was limited. In the environment where the Federal Reserve has entered the most aggressive interest rate hike cycle in decades, the medium and long-term prospects of gold are not optimistic. The US Labor Department will release May CPI inflation data this Friday, which may be in the Fed's June interest rate. The market earthquake was triggered before the decision, and it cannot be ruled out that gold will experience a short-term surge or a sharp decline.

Spot Gold XAU 4-hour chart

A brief technical analysis:

From the 4-hour chart, spot gold rebounded after gaining support at 1836, and rebounded again to around 1850, the median line of 1836-1867, and continued to fluctuate within a narrow range around this point. The trend of gold is difficult to confirm. The operation is still based on the idea of ​​shock. The high altitude and low volume are the main factors. Only after breaking through the sideways range can the follow-up enter the direction of a new stage.

Long-short turning point: 1850

Resistance: 1858.00 1867.00

Support: 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