A text tells you that the interest rate hike is approaching why the price of gold does not fall.

Summary

Gold price trend This week's bull market is widely optimistic about the market. At present, the price of gold continues to rise to a high level, and the boost of non-agricultural data has greatly increased the power of the gold bull market and changed the trend of the past. At present, the gold price has the fundamental technical support at the same time, and it is expected to break through the thousand-three mark on Thursday.

International spot gold continued to hold steady at $1,280 per ounce at the beginning of the Asian session on Tuesday (June 6), short-term highs to around $1,284. Monday (June 5), the employment data released by the former US was disappointing, which lowered the possibility of a rapid rate hike in the United States, but this may not change the prospect of the Fed’s interest rate increase this month. The price of gold once touched $1,283.27. After a six-week high of ounces, it stabilized.

Gold market analysis

At the beginning of June, the price of gold was in a very delicate position, and it has been oscillating around the 200-day moving average around $1,260. However, last week's non-agricultural accidents caused the price of gold to approach $1,280. Although the gold price is currently showing an upward trend, it is still going to return to reality, that is, the Fed's interest rate hike is approaching. Although the non-agricultural data did not boost the Fed’s interest rate hike expectations, the Fed’s rate hike is already inevitable. The gold price trend has risen in the past few days, but it needs to be vigilant against this factor. All the fundamentals are not as good as the bad news of the Fed’s interest rate hike.

Is gold really a short-lived bull market?

On Tuesday, spot gold continued to continue its upward trend. It hit a first-line upside of $1,284 in early trading. Currently trading is near $1284.55, away from the 100 and 200-day moving averages. In the daily chart, the Yang line broke high and closed the star line. The K line was small and the callback space was small. The upward trend did not change. At the same time, due to the small amount of retracement, it also shows a short-term bullish consolidation. Currently, it is in a stage of pushing up the medium-term moving average. The daily chart is optimistic about the further upward trend. Although there is no continuous increase at the moment, once the force is exerted, the next goal is to point to the thousand-three mark. The 4-hour line relies on the 50-day line to support and continue to bargain, and the support moves up to 1275.

Gold price chart

The price of gold was closed in a narrow range on Monday. The disappointing US non-farm payrolls data for May and the terrorist attacks on London over the weekend also supported the price of gold. After the gold price broke through, the kinetic energy slowed down. After yesterday, the inertia brushed a high point around 1283.20 and then pressed back to step on it, confirming that the 1277.50 support continued to oscillate and close.

Waiting for Super Thursday

The three most important events of the week will be concentrated on Thursday, the British election, the former Federal Bureau of Investigation (FBI) director Komi testimony and the European Central Bank monetary policy resolution.

First, the UK will hold a general election on Thursday. Polls still show that the Conservative Party, where Prime Minister Theresa may be, has an advantage, but after the Manchester bombings, its lead has narrowed significantly in recent weeks. The market is worried that if the gap between winning and losing is not large, the UK may enter the Brexit negotiations scheduled to begin later this month. If there is any accident in the general election, the market risk sentiment will be suppressed, and the golden light will shine.

At the same time, the European Central Bank will also hold a monetary policy meeting on Thursday. It is expected that the official wording of the ECB will be fine-tuned, but the policy will remain unchanged. ECB officials may acknowledge that the euro zone's growth prospects are more balanced, giving up on the “downside” risk in the statement. Analysts pointed out that anything that benefits the euro will benefit gold, as it will lead to a weaker dollar.

Finally, on Thursday, FBI Director Komi will go to the Senate Intelligence Committee to testify on Thursday. His publicly-appearing public Fabric will provide clues to his interaction with President Trump in the past few months. The US political scene continues to be turbulent, which supports the recent gold price. On May 17, gold prices surged 1.8%, the biggest single-day performance in two months, mainly due to media reports that President Trump asked Komi to stop suspected former national security adviser Michael Flynn. An investigation into collusion with the Russian government.

Source: First Gold Network

(Editor: Liu Xiaoman HF108)