As mentioned in the last passage, “the gold price at USD1,915 - $1,890 will continue to hold the long-short level in the later period”. It was confirmed that it fell below this area on 2 May. From a technical point of view, gold has recently been under pressure at the USD1,900, and then unilaterally be lower. At present, the lowest level is at USD1,785 and the previous upward breakthrough has basically as a false breakout, and there is no strong support until near USD1,788, in a downward rebound momentum.  

From 13 May, we can see that the US dollar continued to weaken. The decline reached 1% on 19 May as the largest decline recently. Moreover, sharp declines in the US stock market also contributed to the safe-haven buying of gold, thereby driving gold to rise.  

Affected by the short-term risk sentiment and the trend of the US dollar, gold prices continued to rebound. This will be a core factor driving gold prices recently. Although aggressive monetary tightening and the appreciation of the US dollar drag on gold prices driven by persistent inflation and geopolitical risks, I personally think this will protect gold to a certain extent.  

Technically, the gold price has reached the weekly support and then ushered in a rebound. The next day it has broken through the USD1,830 - 1,840 to around USD1,850. Given that the overall rebound momentum is relatively strong, the daily and weekly trends are already severely oversold after all, and no rebound repair has been carried out during the sharp decline, see Figure 1. At present, the daily line is at a low level with a large candlestick rising for ending. It has already shown a rebound signal. It depends on whether the rebound can be effectively continued.  

Focusing on the strong support of USD1,780 - $1,790 below, you can first focus on the bullish opportunity for a rebound in short term. If it can stand firm at USD1,800, it is a good point for long-term purchases. At least the rebound is still fine now. The first hurdle is the ratio resistance at around USD1890 - 1910, see Figure 2. However, investors who also want to pay attention to bears can pay attention to whether there will be a downward signal in this ratio area. If it goes down, the first hurdle is still the previous bottom of USD1,780.

Hugo Leong Gold Analyst of Hantec Group