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Fundamentals

Spot gold was traded unsteadily in a narrow range lower during the Asian session on Tuesday (June 13) and it is currently trading near 1961. Gold prices are stable and investors are in a cautious mindset before the release of U.S. inflation data and the Federal Reserve interest rate resolution. May's U.S. Consumer Price Index (CPI) will be released at 8:30 a.m. ET on Tuesday, the Producer Price Index (PPI) readings will be released on Wednesday morning, and the Fed will announce an interest rate decision at midnight on Thursday. Although the Fed is expected to keep interest rates unchanged, investors are concerned that the Fed may resume rate hikes in July. Gold prices are still under pressure.

Investors need to pay attention to today's CPI data released at 8:30 pm GMT. Its previous value is 4.9% and the market forecast value is 4.1%. According to the release of the previous market data, it is expected that the actual CPI data is not much different from the market forecast value. You also need to focus on the marginal problem of inflation in the United States. If the inflation has eased, it will be bullish to the dollar and bearish to gold; if the inflation remains high, will be bearish to the dollar and bullish to gold.

Technical Analysis

In the daily chart, there is not much change in the market on Monday, with the closing near 1960, consistent with the opening of a small rise in the high point. Following the current market development, each cycle of the moving average has an obvious closing situation. Both bullish and bearish momentums are weakening in the market. Under a series of bear candles last Friday and this Monday, it may lead to the bear going to the downside with the release of positions. Today, if it declines, it can go to the previous low of 1940. As to whether to break, it depends on the market. Because the moving average is closing stickily for the time being, it is difficult to break. Of course, conversely, if it goes higher, the top is still at the previous high of 1985.

As for intraday operation, it lacks direction temporarily. At this time, it is not recommended to trade in the middle point, and you can focus on the key points within the range. The intraday high point of concern is 1965, and the low point is 1950. Before U.S. trading, you can buy low and sell high in this range. Within a day, you can try to buy a small position and sell them in the high. You need to focus on the bearish downward impact of the CPI data. You can focus on 1940 if it goes down below 1950 and on 1932 if it goes below 1940. The aggressive can try to go short with very small positions in 1960-65, with the stop loss of 1970, the take profit target of 1950-1955. And then you can sell some positions and move a stop loss to breakeven with the below focus at 1932. If the CPI announced tonight is bullish, you can buy some positions combined with the market.

Trading Recommendations

Trading direction: Short

Entry price: 1963

Target price: 1942

Stop loss: 1973

Support: 1950.000, 1932.000

Resistance: 1970.000, 1985.000