On Thursday (July 15), the international gold price continued to hit a new high of US$1832.55 per ounce in the past month. Prior to this, Fed Chairman Powell calmed down investors’ concerns and said that he was not in a hurry to tighten policies and increased the price of gold as an inflation hedging tool. Attractive. Powell reiterated that the Fed believes that the current price increase is a transitional view, and that the Fed is expected to continue to purchase debt until it achieves "substantial further progress" in employment, and interest rates may remain near zero until at least 2023.

ANZ Bank analyst Daniel Hynes said that increasing inflationary pressures will make investors nervous, but they are becoming more and more assured of the Fed’s stance, allowing them to continue to build positions in the market. “These conditions are more supportive for (gold) to rise further. ...At present, it will not rise sharply, but a very mild and gradually rising trend."

The U.S. Producer Price Index (PPI) accelerated in June, setting the largest year-on-year increase in 10 and a half years. This indicates that as the U.S. economy recovers from the new crown epidemic, the strong demand driven by the new crown epidemic puts pressure on the supply chain, and inflation may remain at High position. The latest Beige Book released by the Federal Reserve on Wednesday stated that from late May to early July, the increasingly strong US economic recovery promoted widespread employment growth, particularly the growth of low-skilled jobs. However, prices have also risen strongly at an "above-average pace", and the Fed said its corporate contacts are clearly not sure that high inflation will fade soon.

BlackRock CEO and Chairman Larry Fink said that he does not believe that inflation is temporary and that the Fed will have to react to inflation data being higher than the target. “It would not be that bad for the Fed to raise interest rates by 50 or 100 basis points.” However, pandemic-related concerns have stabilized the U.S. dollar slightly, putting pressure on the attractiveness of gold. If the number of new infections increases and household and business spending decreases, the new risks surrounding the Delta variant of the new coronavirus may slow the recovery.

The price of gold soared by more than 1% on Wednesday, breaking through the previous shock range. Powell's dovish speech once again stimulated the confidence of the bulls, and there is a greater chance to go further in the day. From a technical point of view, the current gold price is near the 200-day moving average, and there is still a 50-day moving average above it, which may challenge this level in the day.

However, it is worth noting that KDJ and RSI entered the overbought area at the same time, indicating that the gold price may have a demand for correction in the short-term, but the MACD still maintains the golden cross, and the momentum is gradually enlarged. It is recommended that conservatives wait and see, and radicals continue to buy more on dips. The initial resistance above focuses on the 50-day moving average at 1837.71, and further attention is paid to the 61.8% retracement level of 1853.16 and the June 16 high of 1863.31. The initial support below focuses on the 5-day moving average at 1815.55, and further attention to the 10-day moving average at 1806.04 and the 100-day moving average at 1793.47.

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