In the early Asian market on Wednesday (April 23), it opened nearly $40 lower and once hit $3,313.51/ounce, down nearly $200 from the historical high of 3,500 hit on Tuesday, as U.S. Treasury Secretary Benson hinted that international trade tensions would ease, which stimulated optimism in the stock market and boosted the dollar to a near one-week high; spot gold closed down 1.2% on Tuesday, closing at $3,380.95/ounce.

On Tuesday evening local time, U.S. President Trump said he had no intention of firing Federal Reserve Chairman Powell. As a result, the U.S. dollar soared in the short term and spot gold plummeted dramatically. The remarks marked a huge change in Trump's attitude. He has recently stepped up his criticism of Powell and refused to rule out the possibility of taking the unprecedented step of firing Powell. Meanwhile, spot gold has risen 29% so far this year, hitting its 28th all-time high on Tuesday, hitting the $3,500 mark for the first time. After a short-term surge, bulls also have profit-taking and callback needs.

From the daily level of spot gold, yesterday's gold price trend can be described as a roller coaster. Although it once rushed above the 3,500 mark, it then began to fall rapidly, so the technical form eventually formed a long upper shadow evening star, which may mean that there will be room for correction in the future. Once the support protection of MA5 is lost, it will test the position of MA10 or even MA20. At the same time, we should also pay attention to the overbought signal of the MACD indicator.

From the 4-hour level of spot gold, after the continuous decline and correction during the US trading session last night, this week's gains have been fully recovered. This is a clear bullish profit-taking market. Since it has now fallen below 3400, the short-term technical indicators have shown a signal of a correction. At present, the moving average group MA5 and MA10 have begun to turn downward to exert pressure, and MACD has also formed a dead cross state, so the operation is recommended to temporarily adjust to high selling and low buying. Pressure: 3388-3400-3410 Support: 3375-3360-3350.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.