On Friday (May 23), spot gold traded around 3300.80. Gold prices turned from rising to falling on Thursday as the dollar strengthened and investors took profits after hitting a two-week high in early trading. Spot gold fell 0.6% to $3295.21 per ounce. Gold prices earlier hit their highest since May 9, then fell more than 1%. Gold prices rose in the previous three trading days. U.S. gold futures fell 0.6% to $3294.90.

The current gold market is being pulled by multiple forces. In the short term, the technical rebound of the U.S. dollar and the selling of U.S. bonds do pose pressure. However, the market believes that the pressure of currency depreciation brought about by the $3.8 trillion fiscal expansion, the safe-haven demand caused by the damaged credit of U.S. bonds, and the increasingly obvious risk of stagflation are three factors that are building long-term support for gold. In an era when the U.S. dollar hegemony is facing challenges and the global debt bubble is expanding, the monetary attributes of gold may be reawakening.

From the daily level of spot gold, after the continuous rebound this week, the current price has successfully returned to the top of the short-term moving average group, which means that it is expected to continue the upward space with the support protection below, but it is necessary to observe whether it can confirm the 3300 mark before the closing of the weekly line. In addition, the MACD indicator is also expected to form a golden cross above the 0 axis, which will also become a bullish signal in the future market. The focus of the large range is still on 3250-3350.

From the 4-hour level of spot gold, due to the rapid rise in market risk aversion, the gold price rebounded again to above the 3300 mark, which also showed a relatively obvious bottom shape in terms of form. There is a chance to further open up space in the future market. At present, the short-term moving average group has formed a long arrangement, and the MACD indicator has also broken through the 0 axis in the state of golden cross, suggesting that short-term bulls have a certain advantage. Therefore, it is recommended to adjust to buying on dips. Pressure: 3308-3320-3330 Support: 3290-3280-3270.

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.