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Fundamentals

During the Asian session on Tuesday (June 20), the spot gold slightly oscillated down. It is currently trading near 1950. Yesterday, the market was thin due to the holiday effect, so gold just oscillated slightly. It first surged to 1958, and then went down to 1948, down less than $10 the whole day. The price finally closed at around 1950, slightly lower than last week's closing price. The overall price is relatively flat. Little changes were seen in fundamentals. Gold prices in the short term are likely to swing in a narrow range. Today, several Fed officials will deliver their speeches. Investors need to pay attention to that if the Fed is expected to hike rates in July, the probability of gold moving down will increase. But if the speeches are relatively dovish, gold prices are likely to swing to the upside slowly. Investors are recommended to buy low and sell high today. XAUUSD is expected to oscillate between 1940 and 1955.

The big events to focus on today include the Reserve Bank of Australia's June monetary policy meeting minutes, St. Louis Fed President Bullard's speech at the Barcelona School of Economics, and New York Fed President Williams' speech on leadership at the New York Fed meeting. Important data will be the preliminary monthly rate of U.S. building permits in May, the preliminary annual rate of U.S. total building permits in May, the annualized monthly rate of U.S. new housing starts in May, and the annual U.S. total new housing starts in May.

Technical Analysis

In the daily chart, gold edged down on Monday with a bear candle. It did not change the directionless daily movements. The price is still swinging in the big 1932-1980 range. But this range is too wide to effectively guide intra-day trading. Looking at the trend of the week, gold prices are unlikely to plunge. If the gold continues to oscillate to the downside, we can focus on the 1940-1945 range below. On the contrary, if it edges up, we need to pay attention to the resistance of 1955. Although MACD has hovered around the 0 axis for a long time with a golden cross shown, and the current moving averages are moving toward each other, with little reference value, the price is more likely to move up.

Intraday trading: It's recommended to go long after the price goes down, with a focus on the 1940-1945 area. If the price falls back to this area, investors can try to enter small long positions, with the take profit set at 1955, and stop loss at 1935. If the price rises to 1955, aggressive traders can also enter small short positions. But this level is not high but in the oscillation pivot, short sellers must trade with small enough positions and narrow their losses. The stop loss can be set at 1960, and take profit at 1945.

Trading Recommendations

Trading direction: Long

Entry price: 1943

Target price: 1958

Stop loss: 1935

Support: 1940.000, 1932.000

Resistance: 1958.000, 1970.000