The most comprehensive gold analysis helps you make moneyOn Wednesday, the prices of European and American bonds fell across the board, and the upward yields collectively put pressure on gold prices. Specifically, on the one hand, the yield of Germany's benchmark 10-year German bond rose by more than 10 basis points during the session; on the other hand, after the two-year and five-year Treasury auctions on Tuesday were both in poor demand, Wednesday's $44 billion seven-year Treasury auction was still weak, and U.S. Treasury yields continued to rise during the session. The 10-year Treasury yield rose above 4.60% for the first time in nearly four weeks, and the two-year Treasury yield approached 5.0%, a four-week high. Treasury yields in the United States and other parts of the world generally rose, which put pressure on gold prices to a certain extent.
The U.S. dollar index also rose during the session following the rise in U.S. Treasury yields, erasing the decline since the U.S. CPI inflation cooled in April more than two weeks ago. The ICE Dollar Index (DXY), which tracks the exchange rate of the US dollar against a basket of six major currencies including the euro, basically maintained its upward trend throughout the day on Wednesday. Only European stocks turned short-term before the market opened and fell below 104.60 to refresh the daily low. The US stock market accelerated its upward trend before the market opened. The US stock market broke through 105.00 in the morning and rose to above 105.10 in the afternoon, up 0.5% on the day, refreshing the intraday high since May 13 set last Thursday, exceeding the level before the release of the US April CPI on May 15. The rise of the US dollar suppressed gold priced in US dollars, and the gold trend closed with a negative decline.
Technical aspects: The recent rebound stopped at the 2363.0 line, and the price fell rapidly. The market center of gravity turned from oscillating upward to downward, and the short-term trend was bearish. In the moving average system, the price crossed the short-term 60-day moving average and 100-day moving average, indicating that the price was under pressure; and the MACD fell below the 0 axis, indicating that the downward trend of gold appeared, and the price may weaken in the short term. In terms of operation, try to short on rallies. It is recommended to try to arrange short orders near the pressure level of the 60-day moving average of 2349.0. Pay attention to the first support level of 2326.0 on the downside. If it breaks down, the short position will further test around 2303.0