Gold Prices Consolidate at Support Levels, Awaiting Rebound

On May 22, international spot gold opened with a weaker performance. The weakening support for gold prices was further reduced after Al Arabiya refuted reports from Iranian media citing its coverage of a U.S.-Iran agreement. However, fundamentally, the current market sentiment, influenced by expectations of U.S.-Iran negotiations, saw oil prices trading below the middle Bollinger Band and short-term moving averages in the morning, with bears dominating and short-term trends leaning weak. The U.S. dollar index continued to oscillate at high levels, and yesterday’s candlestick formed an inverted hammer pattern, indicating a potential top and an overall bearish bias, which would support gold prices. Therefore, gold prices are expected to remain biased toward a bullish rebound for the day or next week, with potential targets at $4,660 or $4,700. Today, market participants will focus on the final readings of the University of Michigan Consumer Sentiment Index for May, the one-year inflation expectations for May, and the Conference Board Leading Indicators monthly rate for April. Market expectations lean toward bearish pressure on gold. However, given that yesterday’s overall bearish data failed to sustain downward pressure on gold and instead triggered a rebound from support levels, tonight’s data may once again drive gold prices higher. Consequently, for today’s trading, it is advisable to initially watch for a pullback to support levels before anticipating a bullish rebound.

For preliminary intraday trading reference points (specific entry and exit levels should be confirmed based on real-time account notifications): Gold intraday reference: With oil prices trading at elevated levels, U.S. CPI data hitting a three-year high, and the Federal Reserve expected to maintain higher interest rates for an extended period, direct pressure is exerted on non-yielding assets like gold. Trading is recommended with a range-bound approach. Key support levels to watch are $4,520 and $4,480, while resistance levels are observed at $4,560 and $4,588.