May 17 Morning Gold Outlook

The market turns immediately at the open! Gold prices are struggling to stay above 4500, and the Middle East powder keg can't save the bulls
News: On the bearish side, last week U.S. PPI soared to 6.0%, and CPI rose to 3.8%, both exceeding expectations. The market has already started betting on a rate hike by the end of the year. The dollar has stabilized above 99, firmly suppressing gold prices. The bullish factor is that the Middle East conflict between the U.S. and Iran is still ongoing, but the transmission path has changed: conflict → oil prices rise → inflation increases → rate cuts are unlikely → instead, it’s bearish for gold. So, safe-haven demand isn’t very effective either.

Technical analysis: Although the short-term RSI has entered oversold territory and shows some technical rebound demand, the strength won’t be too large. The strong resistance is at 4560-4580. After the rebound, the downward trend will continue. The 4500 level is a critical line; if broken, it could head toward 4450 or even 4400.

Trading strategy:
Main idea: Consider shorting on rebounds to the 4560-4580 zone, with a stop-loss above 4580. First target at 4530, and if broken, then 4500.
Secondary idea: If the price sharply drops and stabilizes around 4490-4470, you can try a small position for a short-term rebound, with a stop-loss below 4450, targeting 4530-4550.
Investing involves risks; trade cautiously. #Gate广场五月交易分享 #黄金下跌