Fundamental analysis
In the Asian session this morning, spot gold price held steady around 1903. Last Friday (28 May) gold price successfully broke through 1900 and stood firm. This occurs because of the sharp rise of US consumer price in April, which boosts the attractiveness of gold as an inflation hedge. In addition, Biden announced a $6 trillion budget, which greatly increase market inflation expectations and provide strong support for gold price. Factors related to COVID-19 also lead some safe-haven funds enter the gold market. However, due to the cooling down of COVID-19 cases in European countries and US, the economy is restarted, which therefore limits the growth of gold prices. This week’s important data include NonFarm payrolls, initial unemployment claims, ISM manufacturing index, PMI, and the Reserve Bank of Australia interest rate target.

Technical analysis
In the daily level, gold close price went up slightly, and successive crosses presented. Daily MACD upward momentum increases gradually, RSI indicator run in the overbought zone. For the 4H chart, price fluctuated at a high price level, signs of going up from 1900 presented. MACD upward momentum is great, RSI has turned up from the 50 level. Today’s long position is near 1897, stop loss 1888, and take profit 1917, 1925. For the short position, looking at the daily chart , connecting the lower highs, a descending line could be drawn. The top support area is near 1925. Therefore, short at 1925, take profit 1888, 1873, stop loss 6-10 US dollars.

Today’s strategy
Strategy 1: long position 1897, take profit 1917, 1925, stop loss 1887
Strategy 2: short position around 1925-1930, take profit 1900, stop loss 1936

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