GOLD Analysis: Dollar Falls, Gold Takes the Opportunity to Build a Bottom

Fundamental Analysis of GOLD

GOLD Key Takeaways

• Moody’s downgrades US rating: Due to the continuous increase in US government debt, Moody’s Ratings downgraded the US credit rating from the highest level Aaa to Aa1 after the market on Friday, and adjusted the rating outlook from “negative” to “stable”. This means that the United States has lost all AAA ratings from the three major international rating agencies.
• Progress in the US tax bill: The House Budget Committee approved President Trump’s tax and spending bill on Sunday night, which is a milestone for the proposal that is expected to increase the deficit by trillions of dollars. This has exacerbated investors’ concerns about the trend of US debt.

Technical Analysis of GOLD

GOLD Daily Chart Insights

• Stochastic oscillator: The indicator sends a bullish signal above the oversold area, and then the fast line indicator falls back, suggesting that the current bullish and bearish trend direction is still unclear. The previous bullish signal may just be a rebound, which needs to be further confirmed by today’s trend.
• Resistance area: Gold quickly rose after falling to the black 65-day moving average, and the short-term bullish force has the upper hand. At present, the gold price is blocked by the purple 13-day moving average. If the gold price wants to clarify the rising trend direction, it needs to break through the 13-day moving average and the high point of May 15.

GOLD 2-hour Chart Analysis

• Stochastic oscillator: The indicator sends a bearish signal in the oversold area. Today’s Asian session is likely to be dominated by a decline and correction. Based on the fact that the daily cycle is still in a bullish trend, it is first necessary to pay attention to whether the indicator will send a bullish signal near the 50 median line.
• Head and Shoulders Bottom: The trend of gold since last Monday seems to have formed a head and shoulders bottom pattern, and the gold price is blocked by the red neckline in the short term. Pay attention to the price performance of gold near the gap yesterday, and wait for the gold price to break through the neckline before paying attention to the bullish trend.GOLD Pivot Indicator

GOLD Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 3205.00,
• Bullish Scenario: Bullish sentiment prevails above 3205.00, first target 3248.00 , second target 3260.00;
• Bearish Outlook: In a bearish scenario below 3205.00, first target 3182.00, second target 3154.00.

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