The Fed continued to maintain its monetary easing policy, gold bulls
- 2021-05-26
Fundamentally:
Inflation in the United States soared to 4.2. The Fed continued to maintain its monetary easing policy, which puts the market in anticipation of the risk of higher inflation in the United States in the future. The Fed’s monetary easing policy is that the yields of U.S. bonds and the U.S. dollar both weakened. As a commodity with the attributes of hedging and fighting inflation, gold has benefited from it steadily rising.
Judging from the performance of a series of relevant economic data released by the United States in the past few weeks, the performance of relevant economic data has been relatively weak. The performance of non-agricultural data in April has surprised the market, manufacturing, service, ADP, retail sales, CPI, and other data. The performance was not as good as market expectations. Compared with the strong growth in February and March, the economic growth rate of the United States slowed down in April. After the inflation surge in the United States in April, the Fed officials continue to hold that the inflation surge is temporary. There is no plan to change the monetary policy in the short term. The Fed officials have stated that more data are needed to prove that the inflation in the United States is at risk. Otherwise, For the time being, there will be no plans for monetary policy adjustment. Regarding the Fed’s statement, the market expects that US inflation will continue to rise in the future.
Technically:
On the technical graph, gold has broken through the resistance on the edge of the downtrend chart in one fell swoop. At present, on the daily chart, gold is in an upward trend. On the daily graph, gold has started to record the W double bottom pattern in the 1676. A new round of uptrend. After the price of gold breaks through the 1900 price, also pay attention to the next resistance area 1908/1916/1930, and support 1896/1890/1885
Trading recommendations, gold will step on the 1893-1896 front line in the day, stop loss 1886, target at 1902-1908-1915,
Analyzed by: Mr. Duke Ruan,Independent analyst