On Tuesday, May 19, during the Asian morning session, oil prices fell by over 2% following remarks from former U.S. President Donald Trump, who stated he had halted planned attacks on Iran to facilitate negotiations aimed at ending conflicts in the Middle East. He also expressed optimism that the U.S. "very likely" could reach an agreement with Iran to prevent Tehran from acquiring nuclear weapons.
In terms of economic data, key U.S. indicators this week include the four-week average of ADP employment figures, housing data, minutes from the last Federal Open Market Committee (FOMC) meeting, initial jobless claims, preliminary PMI readings, speeches by Federal Reserve officials, and Kevin Warsh's swearing-in as Federal Reserve Chair at the White House.
From a daily chart perspective, gold's short-term decline has slowed, with prices showing initial signs of stabilization and entering a phase of corrective rebound. However, the broader trend remains weak. Monday's daily candlestick closed as a bullish candle with a lower shadow, indicating some support below. Nevertheless, the 20-day and 60-day moving averages continue to diverge downward, further confirming a clear medium-term bearish trend.
On the 4-hour chart, gold prices rebounded after testing lows and have temporarily stabilized above 4500. However, they remain under pressure below the moving averages, limiting the upside potential for the rebound. The RSI indicator shows no signs of overbought conditions, suggesting that downside momentum has not been fully exhausted. Meanwhile, the MACD continues to show green bars, indicating that bearish momentum persists. Overall, for tonight's gold trading, a strategy leaning toward a bearish stance within a range-bound market is recommended.
Evening Gold Trading Strategy: Strategy: Consider short positions between 4566-4568, with a stop-loss at 4592, targeting 4515 and around 4480.
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