In early Asian trading, spot gold fluctuated in a narrow range and is currently trading around $3,300. After rising in the first three trading days of this week, gold prices briefly hit a two-week high of $3,345 in Asian trading on Thursday, then fell sharply and finally closed around $3,294. This rapid change hides the fierce struggle between the strengthening of the US dollar, the turmoil of US bonds and geopolitical changes.
The rebound of the US dollar is the biggest pressure for the rise in gold prices.
Another major pressure on the gold market comes from the sharp fluctuations in US bond yields. The 30-year US bond yield hit a 19-month high, reflecting the market's deep concerns about the $3.8 trillion in new debt. The cold auction of $16 billion in 20-year US bonds on Wednesday further confirmed the judgment that the demand for sovereign bonds is undergoing structural changes.
The current gold market is being pulled by multiple forces. In the short term, the technical rebound of the US dollar and the selling of US bonds do pose pressure. But in-depth analysis shows that the pressure of currency depreciation brought by the $3.8 trillion fiscal expansion, the safe-haven demand caused by the damaged credit of US debt, and the risk of stagflation are three factors that are building long-term support for gold.
I think the shadow of global bond market turmoil will become a potential factor for the bullish gold market.
There are relatively few economic data during Asian trading hours. The focus should be on the annualized total number of new home sales in the United States in April after seasonal adjustment and the speeches of Federal Reserve officials, as well as news related to the geopolitical situation and the international trade situation.
I will also analyze the latest international news and its impact on gold prices for you as soon as possible.
Short-term operation strategy:
First rise: short near 3345, stop loss 3255, profit range 3280-3270.
First fall: long near 3275, stop loss 3265, profit range 3300-3310.
The rebound of the US dollar is the biggest pressure for the rise in gold prices.
Another major pressure on the gold market comes from the sharp fluctuations in US bond yields. The 30-year US bond yield hit a 19-month high, reflecting the market's deep concerns about the $3.8 trillion in new debt. The cold auction of $16 billion in 20-year US bonds on Wednesday further confirmed the judgment that the demand for sovereign bonds is undergoing structural changes.
The current gold market is being pulled by multiple forces. In the short term, the technical rebound of the US dollar and the selling of US bonds do pose pressure. But in-depth analysis shows that the pressure of currency depreciation brought by the $3.8 trillion fiscal expansion, the safe-haven demand caused by the damaged credit of US debt, and the risk of stagflation are three factors that are building long-term support for gold.
I think the shadow of global bond market turmoil will become a potential factor for the bullish gold market.
There are relatively few economic data during Asian trading hours. The focus should be on the annualized total number of new home sales in the United States in April after seasonal adjustment and the speeches of Federal Reserve officials, as well as news related to the geopolitical situation and the international trade situation.
I will also analyze the latest international news and its impact on gold prices for you as soon as possible.
Short-term operation strategy:
First rise: short near 3345, stop loss 3255, profit range 3280-3270.
First fall: long near 3275, stop loss 3265, profit range 3300-3310.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.