Gold trading alert: 1800 barrier lost and recovered, gold prices are expected to see the bottom? Focus on the horror data

By    18 May,2022

At the beginning of the Asian market on Tuesday (May 17), spot gold oscillated narrowly, holding most of Monday's gains and currently trading near $1826. Gold prices bottomed out on Monday, although once fell below the 1800 mark to a new low of nearly three and a half months to near 1786.7, but with the dollar and U.S. bond yields retraced, gold prices twisted down to rise, rebounding to 1820 above. Analysts believe that U.S. Treasuries still have room to rally, which is expected to give gold prices the opportunity to rally further.


This trading day will be out of the United States in April retail sales data, because of its influence, the data has a "horror data" name, investors need to focus on. Currently the market is expected to increase 0.8%, the previous value of 0.5%, may give the gold price rebound trouble.

In addition, this trading day there are a number of officials, including the Fed Chairman Powell speech, investors also need to focus on. At the same time, need to continue to pay attention to the situation in Russia and Ukraine and the new crown epidemic-related news.

RJO Futures senior market strategist Bob Haberkorn said, gold prices rebounded slightly can be attributed to the decline in U.S. bond yields and the dollar fell slightly. However, the overall trend for the dollar "remains high at a time when the Federal Reserve is aggressively raising interest rates.

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Major Fundamental Positives

New York Fed Governor: Rate hike expected to lead to deteriorating liquidity and higher volatility in the U.S. bond market]

The Fed's No. 3 figure, New York Fed President Williams, said financial market liquidity is expected to deteriorate given the tightening of monetary policy and the resulting rise in volatility.

Williams said Monday during the Mortgage Bankers Association meeting in New York, "There is a lot of uncertainty and a lot of events happening in the global environment. We're also seeing clear trends showing that our actions are driving monetary policy toward more normal rates, and I think some of the volatility is actually reflecting some of the information that the U.S. Treasury market is digesting."