Fundamental analysis
On 30 June (Wednesday), the US dollar index rose to a high of more than two and a half months, as global concerns about highly infectious strains of the new coronavirus have increased, boosting demand for US dollars. After the Fed advanced its interest rate hike expectations, gold prices fell sharply, and spot gold price fell more than 7% this month, the biggest drop since November 2016. Gold price rose slightly and closed above the 1770 mark. As investors were cautious about the upcoming US employment data. There was some bargain hunting in the market. Some traders analyzed that the slight increase in gold price was due to the bargain hunting in the oversold market. But the attractiveness of gold as an inflation hedging tool will remain intact, because inflation may last longer, despite the Fed’s more hawkish stance send.
Technical analysis
The daily level gold price rebounded slightly after breaking through the support of Fibo 61.8 yesterday. It tested the highest in the day to 1774, and finally closed around 1770. The Bollinger Band turns down, MACD downward momentum increases, RSI is hovering around the oversold area. For the 4-hour chart, there is a sign of bottom divergence for MACD. Today’s strategy is going to be bullish once the downward trendline is broken through.
today’s strategy
long position 1769, take profit 1785-90, stop loss 1757
On 30 June (Wednesday), the US dollar index rose to a high of more than two and a half months, as global concerns about highly infectious strains of the new coronavirus have increased, boosting demand for US dollars. After the Fed advanced its interest rate hike expectations, gold prices fell sharply, and spot gold price fell more than 7% this month, the biggest drop since November 2016. Gold price rose slightly and closed above the 1770 mark. As investors were cautious about the upcoming US employment data. There was some bargain hunting in the market. Some traders analyzed that the slight increase in gold price was due to the bargain hunting in the oversold market. But the attractiveness of gold as an inflation hedging tool will remain intact, because inflation may last longer, despite the Fed’s more hawkish stance send.
Technical analysis
The daily level gold price rebounded slightly after breaking through the support of Fibo 61.8 yesterday. It tested the highest in the day to 1774, and finally closed around 1770. The Bollinger Band turns down, MACD downward momentum increases, RSI is hovering around the oversold area. For the 4-hour chart, there is a sign of bottom divergence for MACD. Today’s strategy is going to be bullish once the downward trendline is broken through.
today’s strategy
long position 1769, take profit 1785-90, stop loss 1757