On Thursday, June 6th, gold prices experienced a sharp rise, reaching a high of around $3,403 during the trading session, fully fulfilling the expected target. This upward trend was influenced by various factors, including the anticipation of economic uncertainties and the ongoing demand for safe – haven assets. However, the European Central Bank’s (ECB) interest rate hike on the same day strengthened the US dollar index, leading to a sharp drop in gold prices in the US market.
Market Interpretation of Gold’s Movement
Despite the significant drop, the adjustment in gold prices was more regarded as a profit – taking behavior by bulls rather than a signal of a trend reversal. The current key support level remains around $3,350. If the price stabilizes above this level, the overall bullish structure will still be solid. A stronger support level is looking towards the $3,332 line, where there is a technical possibility of a top – bottom transition.
Technical Analysis and Market Outlook
The sharp pullback on Thursday was more like a cleansing operation by the main force of funds to clear their excessive short – term holdings. The daily moving average system remained in a bullish alignment, showing no obvious signs of a bearish turn. Given that the non – farm payroll data will be released on Friday, it is expected that the market will maintain a volatile consolidation trend before then.
Evening Gold Trading Advice
For evening trading on Thursday, Gao Xiaofeng provided the following advice:
Long Position Stop – Loss: Set at $3,353 – $3,350.
Target Prices: $3,342 and $3,388.
Operational Caution: It is essential to control the position size and strictly follow the stop – loss to manage risk effectively.
Conclusion
The gold market’s strong performance on Thursday, despite the ECB’s rate hike, highlights the ongoing demand for safe – haven assets amid economic uncertainties. The key support levels at $3,350 and $3,332 will be crucial in determining the short – term direction of gold prices. Traders should remain vigilant and adjust their strategies based on the upcoming non – farm payroll data release on Friday.
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