asteroidsarcade| Gold market analysis: Hamas is rumored to agree to ceasefire agreement, gold risk aversion drops slightly

Huitong Financial App News-- Tuesday (May 7)AsteroidsarcadeThe price of gold fell after rising in the previous session, while spot gold fell slightly.Asteroidsarcade.3%, at $2315.68 per ounce.

Source: Yi Huitong

Hamas issued a statement on May 6 local time, announcing its agreement with the mediator's proposal for a cease-fire in the Gaza Strip. An Israeli official claimed that Israel had received a reply from Hamas to Egypt on the agreement on a ceasefire and release of detained persons, which was currently being studied. The news led to a pick-up in risk appetite, which slightly suppressed safe-haven buying in gold. And the data are light this week, while the Fed's comments on monetary interest rates have more or less had a weak impact on gold. Fed official Minneapolis Fed President Kashkali said at the Milken Institute meeting that the estimate of neutral interest rates was moderately raised from 2% to 2.5%. It is too early to declare that inflation has stalled. If necessary, the most likely outcome is to maintain current interest rates for a longer period of time. June's personal bitmap guidelines are likely to cut interest rates twice, once or not this year. More data is needed to know whether progress in returning inflation to the 2% target has stalled, and it is too early to declare that it must have stalled. His comments represent the tendency of many members of the Fed that inflation is still not optimistic and that high interest rates need to be maintained for a longer period of time. The Fed's interest rate cut expectations have been repeatedly delayed, hampering gold's progress. If the geo-conflict situation in the Middle East is expected to ease and risk aversion is expected to decline, gold may face a further correction.

Technically, gold is currently below $2325.90 an ounce. The bearish signal transmitted by random indicators, and the MACD signal line also shows no signs of turning the inflection point, indicating that the risk of gold price pullback has not been relieved. Once it falls below the lowest level of this pullback of $2276, the next major target will be $2260.60 per ounce, which is where the 38.2 per cent pullback support of the 1984-2431 rally lies. However, if the gold price rebounds above 2325.90, it will destroy the bearish signal and could cause the gold price to try to regain its rally.

Wang Gang, Bank of China Guangdong Branch

It is only a personal point of view, not the point of view of the organization