monopolypoker| Huang Lichen: The Federal Reserve cuts interest rates in hopes of weakening gold pressure and shocks

May 27monopolypokerLast Friday, we believed that the hawkish minutes of the Federal Reserve meeting and strong U.S. economic data suppressed the Federal Reserve's expectation of interest rate cuts, putting pressure on gold. The technical side showed that the bears were dominant and there was a need for adjustment in the short term. Therefore, we suggest that you should operate on rallies and short the market. The top pressure focuses on US$2340. Currently, gold is trying to break through, followed by US$2348 (the middle track of the daily Bollinger Band), and the bottom support focuses on US$2325.

From then onmonopolypokerLooking at the trend, before the opening of the U.S. market, gold continued to rebound and test, rising to US$2343. After the U.S. market opened, gold surged again, rising to US$2347. It was blocked in the mid-track position of the daily Bollinger Band. Since then, gold has fluctuated and fell back, repeatedly testing to stabilize around US$2332. At the opening of Monday, gold once again stepped back on US$2332 to stabilize. It rebounded to US$2340 and was temporarily trading around US$2336. Overall, gold rallied and fell back and encountered obstacles at the pressure position we gave, which was basically in line with expectations.

Star-rated analysts at Wolfinance believe that the hawkish Federal Reserve minutes released last week, as well as the strong performance of the U.S. preliminary request data and PMI data released later, have reduced the market's bets on the Federal Reserve's interest rate cut this year, putting pressure on gold. As a result, gold prices hit the biggest weekly decline in five months. Among them, gold prices once stabilized and rebounded last Friday. However, Federal Reserve Governor Waller spoke again to suppress expectations of interest rate cuts, causing gold prices to retreat.

In terms of news, the minutes of the meeting showed that inflation was disappointing in the first quarter, and many participants were uncertain about the extent of policy restrictions, which may keep interest rates stable for a longer period of time. U.S. initial jobless claims data showed that the U.S. labor market remained strong. In addition, the manufacturing PMI rose to a two-month high, the services PMI rose to a 12-month high, and the composite PMI rose to a 25-month high. Federal Reserve Governor Waller, a popular candidate to serve as the next Fed chairman, said on Friday that neutral interest rates may rise, speculation that could lead the Fed to delay interest rates.

On the daily chart, gold fell back from historical highs and fell below the 5th and 10th moving averages and the middle track of the Bollinger Band. It fell more than US$90 in two trading days. Its short-term performance was once very weak, and the price of gold has temporarily stopped falling. For the pressure above gold, we can focus on the mid-track of the daily Bollinger Band of US$2348; for the support below gold, we can focus on the gold price rising and falling back last Friday, testing the position of US$2332 many times, followed by this round's low of US$2325. The five-day moving average and the MACD indicator are down, the KDJ indicator's dead fork is slowing down, and the RSI indicator's dead fork is turning upwards, indicating that the technical bears are dominant and there is a need for adjustment in the short term.

Gold intraday reference: The Federal Reserve's hopes of cutting interest rates have weakened, putting pressure on gold prices. In terms of operation, it is recommended to treat it with a volatile approach. Focus on the top pressure of US$2348, focus on the bottom support of US$2332, followed by US$2325.