Gold short-term analysis

20 May

Yesterday, gold continued to fluctuate, and the price continued to be under pressure at the key level of 3250. On the weekly level, gold prices tried to rebound after bottoming out on Friday, but encountered suppression from the short-term moving average. On the weekly level, gold prices attempted to rebound after hitting bottom on Friday, but were suppressed by the short-term moving average. The daily line finally closed in a cross star pattern with long upper and lower shadows, indicating fierce game between bulls and bears. From a technical perspective, the 4-hour chart shows obvious characteristics of a descending channel. The price rebounded after testing the lower track of the channel several times, but it has not been able to effectively break through the central axis suppression level of 3250. The hourly chart shows that the market maintains a rhythm of oscillating corrections. The current daily line forms a combination of two Yins and one Yang, but it has not effectively fallen below the previous low support level. It is expected that the trend pattern of bottoming out and rebounding will most likely continue today. In terms of operation strategy, it is recommended to focus on the 3260-3200 range, relying on the upper and lower edges of the channel to implement a high-selling and low-buying strategy, and at the same time, special attention should be paid to prevent the possible breakthrough risks during the European session.

Overall, today's short-term operation strategy for gold is to buy on pullbacks and sell on rebounds. The short-term focus on the upper resistance of 3258-3260 is the focus, and the short-term focus on the lower support of 3205-3200 is the focus

Gold strategy:

Buy in the range: 3205-3200, SL: 3195, TP: 3225-3235

Sell in the range: 3258-3260, SL: 3270, TP: 3240-3230

Key points:

First support: 3205, second support: 3200, third support: 3190

First resistance: 3260, second resistance: 3265, third resistance: 3275


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20 May

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News: Gold prices fell slightly after rising more than 1% in the previous session as traders assessed the latest progress in the Ukrainian peace talks. The call between Trump and Putin did not seem to have made any major breakthroughs, but Trump said Moscow and Kiev "will immediately begin ceasefire negotiations." Meanwhile, several Fed officials are scheduled to speak later on Tuesday, which may make the Fed's policy outlook clearer. There are no key data and events to focus on during the day. You can pay attention to the speech on economic prospects and monetary policy by the 2025 FOMC voting member and St. Louis Fed President Moussalem at 1 a.m. the next day.

Technical: Gold opened slightly higher yesterday and touched the 3250 line. After filling the gap and touching the low point near 3205, the market rose again, reaching the highest point near 3249. The daily line finally closed at the 3230 line with a small positive line with a long upper shadow line. The current daily line has two negatives and one positive, and it did not break the bottom yesterday. From the perspective of the daily line, it is expected that the probability of bottoming out and rebounding today is relatively high! The short-term important pressure position is around 3252; if it breaks, it will go up to around 3265-3272; if it breaks through 3272 at night, the bulls will try to test the stagflation around 3310! The key support position below is the support band of 3225; if it breaks, it will go down to 3218-3207! Comprehensive analysis: It is expected to fluctuate in the range of 3310-3200 at night, and I personally recommend buying at low levels! GOLD watershed: $3227