SMM News: Tuesday (May 7) early trading in Asia, international spot gold is located in the US $1282.00 / oz region. Gold prices fluctuated on the last day, rising to $1285.70 an ounce in early Asian trading, then retreating sharply from that point, hitting as low as $1276.85 an ounce, and then rebounding again from that point. The day basically closed at the cross star, the current trading day of gold prices continue to maintain the trend of rebound.
The next step of the trading day is to focus on the RBA (RBA) interest rate resolution, China's foreign exchange reserves in April and Federal Reserve (FED) Director Quarles' speech.
At 12: 30 Beijing time on Tuesday, the RBA (RBA) will announce its May interest rate decision and a statement after the meeting. The immediate concern is that the RBA abandoned the idea of further tightening at its policy meeting in April, giving a clear signal that it would consider cutting interest rates if inflation fell and unemployment rose. Whether to cut interest rates in May has become the biggest question in the market, investors will wait and see.
Regarding the gold next trend prospect, the day FXTechstrategy analyst Mohammed Isah latest article, makes the brief analysis and the forecast. The details are as follows:
The last day of trading gold prices closed at the cross star, as a whole reluctantly held the trend of the recent rebound, is expected to further rebound upward.
On the upside side, the initial resistance of gold is at $1290.00 / oz. If it breaks through, it will target $1300.00 / oz. If it stands above that level, it will continue to climb closer to $1310.00 / oz. If the water level is also breached, the resistance above gold is at $1320 an ounce, and a further breakthrough will rise to $1330 an ounce.
At the same time, the daily chart shows that the relative strength indicator (RSI) rose, indicating that gold prices are facing the possibility of continuing to rebound.
On the downside, the initial support for gold is at US $1270.00 / oz. If it falls below, the focus will shift to US $1260.00 / oz. If it falls below, it will open the door to a further fall to the US $1250.00 / oz barrier. Once the water level is also below, it will trigger further downward pressure, with a target of $1240.00 an ounce.
So, to sum up, gold is expected to face room to continue to rebound in the next few trading days of the week.
(spot gold daily chart source: FX168 Financial Network)
In terms of economic data and financial events, the rest of the trading day can focus on:
14:45 French current account for March
The RBA announces its interest rate decision at 12:30
At 15:30 the Bank of Sweden released the minutes of its monetary policy meeting
15:30 Halifax quarterly adjusted house price index for April, UK
16:00, Bank of England Deputy Governor Karev delivered a speech
18:15 Inves, governor of the Bank of Sweden, delivered a speech
19:00 Dallas Federal Reserve Chairman Kaplan attended a question-and-answer session sponsored by the School of Economics and Management of Tsinghua University.
22:00 Ivey purchasing managers' index adjusted for April quarter in Canada
23:35 Federal Reserve Governor Quarles participated in the discussion on financial regulation
At 11-10 Beijing time, spot gold was at $1282.70 an ounce.