Spot gold maintained its intraday downward trend on Wednesday (May 22), with the gold price currently located around $2,410 per ounce.
In early trading on Wednesday, gold prices were consolidating in a narrow range above $2,400 per ounce, awaiting the minutes of the Federal Reserve meeting.
The dollar and U.S. Treasury yields held steady as risk sentiment remained tepid.
At 02:00 Hong Kong time on Thursday, the U.S. Federal Open Market Committee (FOMC) will release the minutes of its monetary policy meeting from the end of April to the beginning of May.
The focus will be on whether policymakers prefer one rate cut in 2024, or two or three cuts.
Gold latest technical analysis
As can be observed on the daily chart, gold prices are forming a rising wedge pattern that could last five weeks. At the same time, the 14-day relative strength index (RSI) has turned downward,
However, it remains within positive territory and is currently close to 64.50, which indicates that a “buy the dip” trade in gold prices is very likely.
However, gold prices need to close daily above wedge resistance at $2,450 per ounce to begin a sustained upward trend. $2,450 an ounce is the all-time high for gold prices set earlier this week.
Once it breaks through $2,450 per ounce, gold prices may rise further towards the $2,500 per ounce level.
However, if gold buyers fail to regain lost momentum, gold prices will fall again towards the May 17 low of $2,374 per ounce.
Gold’s next downside price objective is $2,350 an ounce, which is the confluence of the 21-day simple moving average (SMA) and the lower edge of a potential rising wedge formation.
The last line of defense for gold buyers is the 50-day moving average of $2,304 an ounce.
At 21:10 Hong Kong time, spot gold was trading at $2,410.86 per ounce.
Author: Zhou Tong (analyst) 22-05-2024
#The above are only the author’s personal opinions and have nothing to do with the company’s position.
Warm reminder from Hongfeng Gold: The strategic suggestions are for reference only. There are risks in entering the market, so investment needs to be cautious.