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Fundamentals

During Thursday's (June 29th) Asian session, spot gold narrowly oscillated, and it is currently trading near $1906. Pushed by a series of strong U.S. economic employment data overnight, gold prices once briefly fell below the key psychological level of $1900, and hit a new three-month low at $1892.66. Then, gold prices got support from buying-at-lows, closing back above $1900, at $1908.09, a v-shaped reversal. Now, investors are waiting for the consumer spending data to be released on Friday, which is the Fed's favored inflation indicator, which may again disturb the market.

Data: Initial jobless claims decreased by 26,000 to 239,000 on a seasonally adjusted basis in the week ended June 25th, the largest drop since October 2021. Moreover, the U.S. GDP growth in the first quarter was at a final annualized rate of 2.0%, compared with an initial reading of 1.3% reported last month.

Today's key data: U.S. monthly personal spending in May, U.S. PMI in Chicago in June, and Eurozone CPI in June.

Technical Analysis

Daily chart: The candlestick chart recorded a doji star at the key support level on Thursday, while KDJ tends to form a golden cross as well. Besides, MACD released a bullish divergence signal and plunged to the oversold area. If a bull candle is recorded today, a bottom bullish candlesticks pattern will emerge. Nonetheless, gold is suppressed by the 5-day, 10-day, and 20-day SMAs and is hard to reverse at the moment. The current focus should be on the resistance at $1912 and $1921, further upper space will be opened if the resistance is crossed.

Trading Recommendations: For aggressive traders, try to buy lows and sell highs in a small range. If gold plummets to $1904, try to buy in with small positions after it stabilizes. In addition, the stop-loss will be at $1897, while the primary target to take profits will be at $1912, and the secondary target should be at $1921 after setting the break-even order. It is vital for investors to stay cautious and keep tiny positions, due to the tremendous short-term risk of short orders. Furthermore, investors shall go short with small positions when gold rebounds to $1915 and set the stop-loss at $1921. Regarding taking profits, try to set the target at $1905.

Trading Recommendations

Trading direction: Long

Entry price: 1904

Target price: 1919

Stop loss: 1897

Support: 1900.000/1892.000

Resistance: 1912.000/1921.000