On June 10th, the international spot gold price opened with initial weakness, pressured by bearish fundamental expectations and technical selling pressure. While there is short-term demand for a rebound in the gold price, any recovery is still seen as part of an overall downtrend within a volatile decline, with the overall bearish and weakening trend remaining unchanged. Market attention today will be on the US CPI data, with overall market expectations for an increase, which would fuel inflation and raise expectations for interest rate hikes, creating a bearish bias for gold. Coupled with the recent strength of the US dollar, the robust labor market in recent months has removed the basis for the Federal Reserve to cut rates. Several major banks have reversed their forecasts and are now factoring in rate hikes in the second half of the year. The Fed's hawkish policy expectations continue to suppress the price of the non-yielding asset, gold. Physical gold buying demand from central banks and inflows into gold ETFs have both declined. Therefore, the primary strategy for today's trading remains selling at high levels. Specific trading entry and exit points should be based on real-time positioning guidance from Liu Zhixin.
Preliminary reference points for today's operations are provided below, with specific entry and exit levels subject to notification from live trading accounts:
Spot Gold: Focus on resistance near $4265 or $4300 above; focus on support near $4180 or $4100 below.
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