Fundamental Analysis:

Gold hit a four-month high as hitting $ 1,890 an ounce yesterday on rising US inflationary pressures. Although the US dollar index rebounded significantly, U.S. Treasury yields rose after a compelling statement from federal policymakers when they introduced Possible changes in future policy. On the other hand, gold prices fell from new highs after the dollar index rose to 90.12 yesterday and US bond yields 10-year rebounded from a new record low of 1.469%.

The minutes of the Fed meeting show that some Fed members enjoy discussing asset purchases at the upcoming policy meeting, which is likely to reduce cash flow in the system and be negative for gold prices. . Mr. Bullard, President of St. Bank; Louis said the United States has “great economic growth” and he would not be surprised if the US GDP estimate of 2021 is raised to 6.5%.

In addition, positive economic data from the euro area is likely to reduce demand for gold, a safe haven asset. EU new vehicle registrations in April rose + 218.6% year-on-year, indicating strong economic activity in Europe. Eurozone CPI report is also negative on gold demand after the Eurozone core CPI in April was slightly lower from + 0.8% to + 0.7% year-on-year.

Technical analysis of the gold trend:

The price of gold is likely to meet the first resistance of nearly $ 1900 – $ 1920. However, it can find support levels around $ 1840 – $ 1820.

The gold target has continued to rise from $ 1,680 an ounce since March 2021 and is also the support price since April 2020.

Trading Advice:

Short-term investment: Investors can sell gold at the current price of 1870, set take profit at 1845 and set the risk at 1885.

Long-term investment: Investors can buy gold at 1820, set take profit at 1900 and set risk management at 1780.

Analyzed by：Mr. Chamroeun Chanvuthy，Independent Analyst