With the continuous rebound of gold starting in mid-May, many experts and institutions do not have much hope for the rebound of gold prices, because this round of market does not have effective long-term support, largely because of the moderate rebound of gold prices due to a long-term decline. The First Gold Network believes that this is a preheating for the Fed's plunge in interest rate hikes in June. At this time, the rise in gold prices can provide a good hedging effect for the possible continuous decline in June. Looking back at the decline in gold prices in March, the price of gold fell by nearly $60. There are red flags in gold price trend charts, is the plunge in gold prices about to begin? This time, the Fed's June interest rate hike expectations remain high, and investors may be mentally prepared to fall by $60.
However, last week, the gold price suddenly exploded and broke through $1,260. However, the good times did not last long. After the breakthrough, the market immediately closed for the holiday. However, after the opening today, after the brief rise in gold prices hit $1,270, as the European session entered the European session, the gold price began to continue to fall. After entering the US session, the gold price fell further and approached $1,260. Are there any major negative factors during the day? It seems that there is no such thing as China is still in the Dragon Boat Festival holiday, and the United States has no important data released.
Not only that, but because Italy may be early election, coupled with Merkel's remarks over the weekend, the situation in Europe has once again become uncertain. In this case, the decline in gold prices can clearly show that the current rise in gold is no longer enough to continue to support the current market of gold prices.
In the daily gold trend chart, last week, gold prices rose sharply and recorded a positive line . However, the market did not fluctuate much on Monday. The gold price not only did not continue the increase, but instead recorded a small negative line. Now, the gold price started to fall sharply on Tuesday, which has formed a " Dusk Star " pattern. Therefore, the gold price has a high probability of falling below $1,260 tonight. If it breaks, it is likely to start the same trend as the plunge in March.
This round of gold price decline turning point is at US$1,270. If we look at the decline of US$60, the bottom should be US$1,210. However, there was an article from No. 1 Gold that physical gold demand has gradually increased worldwide this year. The current situation in Europe is still unstable. The demand for gold in various countries will inevitably continue, so the support below the gold price may form a certain support. plus the gold upward channel range marked in the trend chart, so we can first focus on US$1,230 this time the gold price falls, and then look at the two key support of 1,220.
. Finally, it should be noted that the gold trend chart has shown dangerous signals, suggesting that the decline is about to occur, and the most important market conditions this week will be released on Thursday and Friday. Therefore, if the gold price holds $1,260 today, then Thursday and Friday may be the turning point of gold. If it loses $1,260 today, then Thursday and Friday may further expand the decline in gold. Because judging from the employment situation in the past few consecutive weeks, the non-agricultural data is likely to be negative gold.
