On Wednesday (June 8), the international gold price fell slightly, as the rise in US dollar and US bond yields Limited gold demand. Investors are waiting for the upcoming U.S. inflation data to further study and judge the prospect of the Federal Reserve raising interest rates. Gold is still down $1824.
At 14:55 Beijing time, spot gold fell 0.13% to US $1849.74 per ounce; COMEX gold futures contract fell 0.02% to $1851.8 / ounce; The dollar index rose 0.19% to 102.546.
Edward Meir, an analyst at ed&f man capital markets, said, "gold has been trading sideways in the past few weeks. I think the reason is that people may be optimistic about some inflation data... Inflation may be approaching its peak... If inflation tends to stabilize, it is not conducive to the rise of gold."
The rise of gold was largely limited by the tightening of monetary policy by central banks around the world. Investors are now waiting for the core consumer price index (CPI) to be released on Friday (June 10). The market expects that the overall and core CPI of the United States in May are expected to rise by 8.3% and 5.9% year-on-year respectively.
TD securities strategists predict that the option market has accumulated a large number of open positions around us $1850 per ounce in the early stage, and the quantitative tightening policy of the Federal Reserve has been launched, but the market is not satisfied with the expectation that the Federal Reserve will significantly raise interest rates.
This indicates that the gold price may continue to fluctuate in the range around $1850, but there will be more liquidation. The margin of safety for gold to keep rising continues to weaken, leaving little time for the gold market to avoid entering the bear market trading mechanism.
On the daily chart, the gold price may start the downward III wave trend from US $1874, and the lower support looks towards the 23.6% target of US $1824. III wave is the sub wave of downward (c) wave since 1998 US dollar. (c) The wave belongs to the ((c)) wave started from US $2070.
However, the gold price may still be in the upward II wave starting from US $1786. Among them, since $1836, the upward ((c)) wave is the sub wave of Wave II, and the upward resistance looks at ((c)) wave 38.2% of the target level of $1868.