Adjustment over? Uptrend coming?Information summary:
A new round of air strikes by Israel against Iran on Friday has significantly escalated the conflict in the Middle East. Investors have quickly poured into traditional safe-haven assets such as gold, U.S. Treasuries and the Japanese yen. The market's current first choice for hedging geopolitical risks is gold, not the U.S. dollar. The U.S. dollar index rebounded slightly this week, but it has not become the main target of safe-haven fund flows, and gold has dominated the flow of safe-haven funds.
Although risk aversion has become the main theme of the gold market this week, the Fed's policy trends are still the core variable affecting the long-term direction of gold prices. In this week's FOMC meeting, the Fed kept interest rates unchanged and hinted that it may only cut interest rates once this year. But Powell also pointed out that future policies will still depend on data, leaving speculation about reversals.
Market traders generally believe that if the future inflation data falls more than expected or the job market slows down, the Fed's stance may turn dovish again, and gold prices may therefore gain new upward momentum.
Trend analysis for next week:
The weekly bullish trend extends, and there is still a lot of room for growth. After a round of decline last week, the weekly line closed this week again in a very strong position, and the daily rising trend channel resumed its operation. From the market alone, the gold price trend has been stabilizing above the middle track, and the bulls continued to line up at the opening of Monday. From the indicators, the middle track has been extending upward. Since May, the price has continued to create highs in the rising channel and has a tendency to challenge the historical high position of 3500, indicating that there is still room for upward movement in the short term.
From the 1-hour chart, the price rose to 3447 and then made a short-term correction to 3420, and the correction has been sufficient. 3420-3415 forms the most important support area. If this position is touched, it is an opportunity for long trading; but the price may not fall back to the support line and rise directly. Before breaking the important neckline, no short strategy will be adopted at the beginning of next week. We can patiently wait for the opportunity to go long after the correction.
Operation strategy:
Buy at 3415-3420, stop loss at 3410, profit range at 3450-3455.
