Since the Fed raised interest rates to 1.75% in June, the gold has not seen a significant upward or downward trend. I think the reasons behind this may focus on two aspects. First, the Fed may continue to raise interest rates in the future. Second, the Fed's willingness to control inflation is strong, so there is a possibility of a greater fall in future inflation expectations. Powell mentioned that he will never rule out any possibility and will take all necessary measures to restore price stability. While the interest rates are rising, inflation is expected to fall which will limit the increment of gold. Therefore, even if there is an uptrend in the short term, it will be defined as a rebound and callback of the falling, and it will not be further optimistic until the range of technical judgment is effectively broken.

Gold has been in a volatile trend since it started a clear downtrend on 18 April. Recently, it has been interspersed in the range around the impact of the Fed's interest rate increment. From the daily chart, the gold still has no direction with short-term resistance between US$1,860 and US$1,880, respectively. It can be seen from the picture that this area has been unsuccessfully challenged three times in a row. On 13 June, after the first line of US$1,875 encountered resistance, it pulled back sharply and the upward trend was insufficient. The support lies at US$1,805 and then at US$1,780. If the latter falls, it will trigger a deeper adjustment.

On the other hand, in the four-hour chart, gold is at the bottom of the horizontal range and the downside is relatively small. The space above is relatively attractive. In addition, there was a downward false breakout on 14 June, and it quickly pumped up, indicating that some buying orders were involved at the bottom of the range. Investors who are concerned about bulls may buy appropriately at the bottom of the horizontal range. The target is to look at the top of the horizontal range near US$1,880.

Given that the gold is currently consolidating after falling, even if you focus on the bulls, you will only see a rebound as mentioned above. Be cautious of the false breakout after US$1,880 has broken upwards and the rally will end. In conclusion, pay attention to the trading opportunities of buying low and selling high in the horizontal interval. In the big picture, it needs to break through US$1,880 successfully and stand firm before launching a new round of uptrend.

Hugo Leong Gold Analyst of Hantec Group