On Monday (June 7) in the Asian market in early trading, spot gold fell slightly and is now at around US$1891 per ounce. Some financial analysts analyze the technical prospects of gold prices. He pointed out that from the daily chart, the relative strength index (RSI) finally fell below 70 after the sharp drop last Thursday, indicating that the price of gold has corrected its overbought level. At the same time, the upward trend line that began in early April constituted support last Friday, and gold closed above the 20-day moving average, indicating that investors viewed the recent decline as a buying opportunity. As the US non-agricultural employment data increased less than expected, the price of gold rose sharply last Friday. The yellow price closed at US$1891.03 per ounce, a sharp increase of US$20.67 or 1.11%, and the highest intraday hit US$1896.13 per ounce.
On Wednesday and Thursday, the Bank of Canada and the European Central Bank are discussing interest rates, and both central banks are worth paying attention to. The market estimates that the increase in the central bank will be faster in July, and the slower in October will further reduce the scale of debt purchases. Whether this is the case, it is expected that this week’s meeting of interest rates will give the market enlightenment. As for the European Central Bank’s interest rate meeting on Thursday, it is more important. This is because the minutes of the May interest rate meeting published at the end of last month showed that the ECB members had discussed whether to tighten monetary policy as soon as possible. But the discussion at that time was inconclusive. I believe this meeting will give the market an answer.
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