May 1stHaktuts2020freespinsYesterday, gold took a sharp fall. After a small rebound, gold began to wobble and fell all the way below the 2300 mark in the US market. It hit a low of US $2284 at night, and finally closed at US $2285. The daily line closed at a big Yin line.
Wednesday (May 1) with the Fed's decision due on Wednesday, market expectations are likely to be hawkish, with rising dollar and Treasury yields weighing on gold prices, despite strong safe-haven demand and central bank buying that pushed gold prices higher for the third month in a row. Once the evening news announced a delay in interest rate cuts, then gold still has a lot of downside.
It can be said that as US data show rising employment costs, indicating persistent inflationary pressures, the Fed needs to be patient when cutting interest rates. In addition, Israel is preparing to send a delegation to Cairo to participate in the Gaza cease-fire negotiations, which weakens the safe haven buying of gold and dealt a blow to the gold price.
From a technical point of view, gold showed a negative decline pattern yesterday, and there was a temporary decline around 2310 and 2300 in intraday trading, but it did not last long, failed to bring rebound momentum, and eventually lost again. This state shows that bulls are panicking and selling ahead of schedule in the face of Fed interest rate decisions. Under the influence of this mood, it is very difficult for gold to have a reasonable rebound today. It may even be driven by the spread of emotion and continue to fall into the negative, and adjust the negative events in advance.
In short, the upper 2300 of the day may become a key pressure in Asia and Europe, and if the intraday Yin fall spreads, it may fall back to 2280-70 to find support, which is also the main support area of the pullback that has been expected. As for the Fed interest rate decision in the early morning, if bullish gold chooses to stop falling in the 2280-70 area, the top can only rebound to 2300, 2320-30, while if it is bearish gold, it will withdraw 2250-30 area below. The specific situation will be subject to the Fed interest rate decision before making the relevant adjustment.
Therefore, it is suggested to operate within the day.Haktuts2020freespins:
Gold: 2288-2290 short, stop 2300, target 2260-2250-2240.
Today's focus on financial data and events: Wednesday, 01 May 2024
20:15 US April ADP payrolls
21:45 final value of Standard & Poor's Global Manufacturing PMI in April
22:00 US April ISM Manufacturing PMI
22:00 JOLTs vacancy in March, USA
22:00 monthly rate of construction expenditure in the United States in March
The Federal Reserve announced its interest rate decision at 02:00 the next day.
At 02:30 the next day, Federal Reserve Chairman Powell held a press conference.